A B S T R A C T Pleurotus; Myelial; Exo- polysaccharide; Antioxidant, Antimicrobial. The aim of the present study on the potential of edible mushrooms as a mycelial biomass source use as food additives and bioactive source (Exopolysaccharide) for antimicrobial and antioxidant activity. Also, it aims to study the effect of various carbon sources such as glucose, maltose, sucrose, starch, lactose and fructose on mycelial biomass and exopolysaccharide production by Pleurotus ostereatus at different fermentation periods. The optimal period for mycelial biomass and exopolysacchride production was 15 days. The optimal sugar for mycelial biomass production was starch.The optimal sugar was glucose for high efficiency of exoploysaccharide production; antimicrobial and antioxidant abilities. The concentrated culture exopolysaccharide filtrate of Ploroteus oysterous showed wide antibacterial inhibition (63.15%, 59.25%, 55.31%,36.84%,17.24% for B.subtilis, B.cereus, E.coli, Staph aureus and Pseudomonas aeruginosa ,respectivelly) when glucose used as the only carbon source.. Pleurotus ostreatus cultivated in a medium containing glucose as the only carbon source, showed the highest antioxidant activity (59.90%).The bioactive contents of the mushrooms are promising natural antimicrobial agents that can be harnessed as potent antibacterial and fungi toxicants