Mushroom species release various bioactive compounds such as Terpenoids, Flavonoids, Tannins, Alkaloids, and Polysaccharides. They are rich source of natural antibiotics; Basidiomycetes produce a large number of secondary metabolites, which show antibacterial, antifungal, antiviral, cytotoxic and hallucinogenic activity. In this view, the study was proposed to explore the antimicrobial principles from Macrobasidiomycetes against Rice Sheath blight incitant R. solani. Eleven species of mushrooms were collected viz., Ganoderma oregonense, Stereum complicatum, Auricularia auricular-judae, Trametes versicolor, Psathyrella obtusata, Trametes gibbosa, Lepiota brebissonii, Schizophyllum commune, Clitocybe sp, Podoscypha sp, Coprinus comatus. The interaction between wild mushroom and plant pathogenic fungi in dual cultures on PDA has been tested, based on the antagonism index (AI) values; six mushrooms were selected for further studies. Results from dual culture technique revealed that Ganoderma oregonense, Clitocybe sp and Lepiota brebissonii showed maximum antifungal activity by inhibiting the mycelial growth of R. solani. (68.50%, 59.25 % and 50.14% respectively) with maximum inhibition zone of (3.20 mm, 2.80 mm and 1.70 mm respectively). With regard to poisoned food technique the culture filtrates of Ganoderma oregonense at 15 and 20 per cent conc. completely inhibited the mycelial growth of R. solani. Followed by Clitocybe sp at 20% Concentration. The least inhibition on the mycelial growth of R. solani was observed at 20% concentration by Lepiota brebissonii, Stereum complicatum, Trametes versicolor and Schizophyllum commune. Hence, It is well proven that antimycotic extracts of Ganoderma oregonense posses antimicrobial activities against the growth of R. Solani.