Abstract: Handmade paper and cardboard industries are involved in processing of cellulosic and ligno-cellulosic substances for making
paper by hand or simple machinery. In the present study, solid sludge and effluent of both cardboard and handmade paper industries was
collected for developing a mushroom cultivation technique to achieve zero waste discharges. Findings of present research work reveals that
when 50% paper industries waste is used by mixing with 50% (w/w) wheat straw, significant increase (96.38%) in biological efficiency over
control of wheat straw was observed. Further, cultivated basidiocarps showed normal morphology of stipe and pileus. Cross section of
lamellae did not show any abnormality in the attachment of basidiospores, hymenal trama and basidium. No toxicity was found when fruiting
bodies were tested chemically.