Milky mushroom (Calocybe indica) is the become third commercially grown mushroom in India after Agaricus and Pleurotus mushrooms. This mushroom is fast reputation due to its attractive robust, sustainable yield, delicious taste, unique texture and cholesterol free foods with certain important medicinal properties including their antiviral effect. Mushroom are very good source of protein, vitamins and minerals with attracting flavor and it is cholesterol free foods. Milky mushroom is also an excellent source of thiamine, riboflavin, pyridoxine, biotin, nicotinic acid and ascorbic acid. The locally available substrates for its cultivation, the paddy straw substrates and wheat straw substrate are very suitable for the milky mushroom cultivation. The higher yield of milky mushroom depends upon proper maintenance of pure culture as well as purity and quality of the spawn used. Sometimes, there is complete crop failure depending upon the stage of infection, superiority of compost and environmental conditions. The methodical characterization of fungal communities in casing soil, a functional analysis is needed to highlight potentials and applications.