Mushrooms can not only convert lignocellulosic waste materials into human food, but also can produce notable nutriceutical products, which have many health benefits. They provide people with an additional vegetable of high quality, and enrich the diet with high quality proteins, minerals and vitamins which can be of direct benefit to the human health and fitness. Edible mushrooms are highly nutritious and can be compared with eggs, milk and meat. The extractable bio-active compounds from medicinal mushrooms would enhance human’s immune systems and improve their quality of life. The content of essential amino acids in mushroom is high and close to the need of the human body. Mushroom is also easily digestible and it has no cholesterol content (Oei 2003). The spent substrate left after harvesting the mushrooms, which is entangled with innumerable mushroom threads (collectively referred to as mycelia), can also be used as animal feed (more palatable), bio-fertilizer for soil fertility enrichment and biogas (Alice and Kustudia 2004).