Mushroom cultivation is one of the most profitable business and environment friendly enterprises, with the various horticultural crops in India. In the current investigation focused on the cultivation of edible mushroom with two different agricultural waste substrates were performed. The two types of raw materials such as paddy straw and sugar cane trash were used for cultivation of Pleurotus florida and Hypsizygus ulmarius. Growth and yield parameters of P. florida was initiated from I, II and III harvested stages were observed. The first harvest mushroom in both was excellent growth and weight when compared with the other two harvests. The total yield of edible mushrooms in paddy straw was maximum production than that of sugarcane trash respectively. Whereas H. ulmarius mushroom was moderate growth yield were performed. The biological efficiency of H. ulmarius grows with paddy straw was maximum yield found to be recorded than sugarcane trash substrate respectively. However, the paddy straw substrate was excellent for cultivation of mushroom when compared with sugarcane trash substrates. Maximum fruit bodies were harvested when P. florida were cultivated in paddy straw substrates Qualitative insights of bioactive compounds such as alkaloids, amino acids, coumarins, flavonoids, glycosides, phenols, phlobatannins, quinones, saponin, steroids, tannin and terpenoids were screened from P. florida and H. ulmarius with four different solvents were used for extraction. Among the four solvents extracts of the diethyl ether using P. florida showed maximum bioactive compounds like alkaloids, amino acids, coumarines, glycoside, phenols, phlobatannins, quinones, saponin, steroids, tannin and terpenoids recorded respectively. These bioactive compounds are responsible for many biological properties in our day today life. Hence, these bioactive compounds are responsible for many nutraceutical properties are described in mushrooms for prevention of various diseases including hypertension for the human era.