Psilocybin affects the same brain systems that help regulate mood and sleep. Because those systems are so intertwined, changes in one can affect the other. Some individuals may need a temporary adjustment period while others experience deeper sleep and more vivid dreams right away.
Additionally, psilocybin is typically is more activating than sedating so microdosing earlier in the day is recommend to avoid sleep disruptions.
Psilocybin is not a sleep aid, but for some people it may indirectly support sleep by easing stress, emotional load and mental chatter. For others, it may be too activating, especially if taken with Lion's Mane, too late in the day and taken too often, without rest days.