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Tremella fuciformis has been cultivated in China since at least the nineteenth century. Initially, suitable wooden poles were prepared and then treated in various ways in the hope that they would be colonized by the fungus. This haphazard method of cultivation was improved when poles were inoculated with spores or mycelium. Modern production only began, however, with the realization that both the Tremella and its host species needed to be inoculated into the substrate to ensure success. The "dual culture" method, now used commercially, employs a sawdust mix inoculated with both fungal species and kept under optimal conditions.

The most popular species to pair with T. fuciformis is its preferred host, "Annulohypoxylon archeri".

In Chinese cuisine, Tremella fuciformis is traditionally used in sweet dishes. While tasteless, it is valued for its gelatinous texture as well as its supposed medicinal benefits.  Most commonly, it is used to make a dessert in Cantonese, often in combination with jujubes, dried longans, and other ingredients. It is also used as a component of a drink and as an ice cream. Since cultivation has made it less expensive, it is now additionally used in some savoury dishes.

Tremella fuciformis extract is used in women's beauty products from China, Korea, and Japan. The fungus reportedly increases moisture retention in the skin and prevents senile degradation of micro-blood vessels in the skin, reducing wrinkles and smoothing fine lines. Other anti-aging effects come from increasing the presence of superoxide dismutase in the brain and liver; it is an enzyme that acts as a potent antioxidant throughout the body, particularly in the skin. Tremella fuciformis is also known in Chinese medicine for nourishing the lungs.