This study was focused on substituting a part of whole wheat flour (WWF) with mushroom flourrn(MF) to develop mushroom bread for children, as an attempt to solve the problem in proteinrnenergy malnutrition of children from 1-5 years. The effect of mushroom supplementation onrnsome physico-chemical and sensory properties of wheat bread was determined, as well as therndough rheological properties(farinograph) of the whole wheat flour with various proportions ofrnthe protein- rich mushroom flour were investigated. Examination of the functional propertiesrnof two different flours and breads were carried out. Analyses were made for differentrnformulated bread and compared with the recommended daily allowance (RDA). The crudernprotein, crude fat, crude fibre ,ash and energy of the composite bread loaves increasedrnsignificantly (p < 0.05) from 10.21% to 23.92%, 1.72% to 1.92%, 1.59% to 2.57% ,0.88% torn2.69% and 275.4kcal to 276.45kcal, respectively ; while the moisture content and carbohydraterndecreased with increased level of supplementation from 30.84% to 28.02%, and 54.76% torn40.89% respectively. There was also a decrease in bulk density and bread volume byrn22.22% and 44.86% respectively, with progressive inclusion of the mushroom flour. Thernsensory analysis showed that there was no significant difference (p < 0.05) in texture, taste,rnflavour and overall acceptability up to 12.5% substitution with mushroom flour. In this study, itrnwas attempted to optimize the ingredient formulation and processing parameters of MFrnincorporated bread such as nutrient and sensory score responses. D – Optimal design wasrnused which consists of WWF and MF, with 13 formulations for the nutrient and sensory score ofrnthe MF incorporated bread. The result showed that the optimized acceptability of the MFrnincorporated bread containing WWF 80.86%, MF 19.14%, protein 34g, energy 455.78kcal andrnoverall acceptability of 6.2 was suitable for children between the age groups of 1-5 years beingrnnot lower than the recommended dietary allowance for this group of children . It was concludedrnthat a substitution of 12.5% mushroom flour into wheat flour gave the bread with the best overallrnquality indices. Therefore Mixture Design was used to investigate the effects of WholernWheat Flour (WWF) and Oyster Mushroom flour (MF)) on the bread.rnKeywords: Bread, characterization, mixture design, mushroom, optimization, protein, wheat.