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Productivity of rice and wheat, the major crops of the state, is reported to have approached a plateau and farm income is reported to be stagnant. There is need to promote different auxiliary enterprises among farmers. Keeping all these things in view study on prospects of mushroom cultivation in Punjab was conducted. From six clusters, two clusters were selected randomly. From these two clusters 90 farmers were selected randomly for the purpose of this study. An interview schedule was prepared for collection of data. Data were collected personally by the researcher. Majority had adopted mushroom cultivation as main occupation (63%), obtained information from friends. Regarding experience in mushroom cultivation majority of the farmers (43.33 %) had experience of 7-14 years. More than 25 per cent of the respondents were willing to decrease their area under mushroom cultivation and only 3.33 per cent of the respondents  had plan to keep area constant under mushroom cultivation