R&D on the optimization of conditions for spawn production and cultivation of medicinal mushroom, Lentinus edodes is in progress. Besides the development of technology on medicinal mushroom, training on cultivation of edible oyster mushroom is being given to many beneficiaries. Even the housewives can cultivate the mushroom in their backyards or shelves by providing humidity through wet sand or wet rags etc. Locally available lignocellulosic materials such as paddy straw, reeds, banana psuedostem, sugar cane leaves, sugar cane bagasse, milled and crushed coir pith, sorghum husk and sunflower stem for cultivation of mushroom. They . get a profit of Rs.60-70 per kg of mushroom. Training programmes on cultivation of mushroom and awareness on the nutritional value was provided to SHGs, and students from schools and colleges. More than 500 beneficiaries from Cuddalore, Coimbatore and Kancheepuram district in Tamil Nadu were benefited.