An experiment has been conducted to study the effects of mulberry sawdust on the growth of mycelium,fresh yield and economic benefit of mushroom and to evaluate the reasonable application of the mulberry sawdust resources.The mulberry sawdust was applied at different rates to culture Pleurotus ostreatus in Nazhou village of Liupai Township,Tian’e county,Guangxi,during the year 2008 and 2009.The results showed that Pleurotus ostreatus could grow well when applied with different rates of mulberry sawdust,but the yield,bio-transformation rate and ratio of input to output of fresh Pleurotus ostreatus were the best in the culture formula of 30% mulberry sawdust,55% maple sawdust,10% wheat bran,1% gypsum,2% lime and 2% calcium superphosphate together.This formulation may be used for sustaining the production of Pleurotus ostreatus.