This article is from the 2006 series of SMBZ and is no longer canon.
1-Up Mushrooms (also called Life Mushrooms in Super Mario Bros. Z) are meant to give whoever eats it one extra life, or recovers from thier currently poor condition. They appear in all the Mario series games since Super Mario Bros. In Episode 6, Princess Peach gave Luigi one and uses one on Mario after Mecha Sonic blasted Mario away. In Episode 8 Sonic racks up points and gains an extra life, and Luigi carries on with him.