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Milky mushroom has been standardized on locally available substrates, This is the first Indian mushroom variety to be commercialized by IIHR. Milky mushrooms seem to be popular in India, but there are few details available for would-be growers. Scientifically known as Calocybe indica, the milky mushroom grows in forest environments in India. As far as we can tell, the species was first cultivated in the mid-1970's using straw substrates, much like oyster mushrooms. They seem to like very hot temperatures in the vicinity of 95° F. After incubation, a casing layer is added. This mushroom variety was first identified in the eastern Indian state of West Bengal and can be cultivated on a wide variety of substrates, at a high temperature range (30~38℃). However, no commercial cultivation was made until 1998. Krishnamoorthy 1997 rediscovered the fungus from Tamil Nadu, India and standardized the commercial production techniques for the first time in the world. This edible mushroom has a long shelf life (5~7 days) compared to other commercially available counterparts. A comprehensive and critical review on physiological and nutritional requirements viz., pH, temperature, carbon to nitrogen ratio, best carbon source, best nitrogen source, growth period, growth promoters for mycelia biomass production; substrate preparation; spawn inoculation; different supplementation and casing requirements to increase the yield of mushrooms has been outlined. Innovative and inexpensive methods developed to commercially cultivate milky white mushrooms on different lignocellulosic biomass is also described in this review. Milky white mushroom extracts are known to have anti-hyperglycemic effect and anti-lipid peroxidation effect. The advantage of growing at elevated temperature creates newer avenues to explore milky white mushroom cultivation economically around the world, especially, in humid tropical and sub-tropical zones. Because of its incomparable productivity and shelf life to any other cultivated mushrooms in the world, milky white mushroom could play an important role in satisfying the growing market demands for edible mushrooms in the near future. Keywords: Antioxidants, Flavor compounds, Medicinal value, Milky white mushrooms, Mineral composition, Neutraceuticals.