The paddy straw mushroom is having good combinations of all attributes like flavour, aroma, delicacy, high content of protein and vitamins and minerals, because of which, the acceptability of this mushroom is no way less than much popular white button mushroom. It is an edible mushroom of the topics and subtropics, and began to be cultivated in China as early as 1822. Around 1932-, the straw mushroom was introduced into the Philippines, Malaysia, and other south-east Asian countries by overseas Chinese. Since then, its cultivation has been conducted in various countries outside of the region. The fruiting body formation starts with tiny clusters of white hyphal aggregates called primordia and it is followed by several morphological stages in the fruiting body development process. The successive stages are called as "button", "eggs", "elongation", "mature" stages respectively. Differentiation can be seen first at the 'button' stage. At maturity the buttons enlarge and umbrella like fruit bodies emerge after the rupture of the volva.