In the present study, effect of different substrates on mycelial growth and yield of Volvariella diplasia was evaluated. Volvariella diplasia, the paddy straw mushroom, is worldwide one of the most widely cultivated mushrooms. Cereals are the most popular basal ingredient used in synthetic substrate formulation for producing paddy straw mushroom spawn. However, the present work evaluates the best and cheap substrate for spawn culture and mushroom production. Paddy straw mushroom was cultivated on various types of cereals (Wheat, Maize, Ragi, Jowar, Bajra) and pulses (Bengal gram, Green gram). Cultivation on Bajra resulted in significantly faster mycelial growth as compared to other substrates followed by Jowar. With respect to fructification, culture on wheat shows highest production. The lowest biological and economical yields were found when the culture was on bajra. Biological efficiency and biological yield were highest with culture on wheat. The above findings reveal an opportunity for commercial implication of paddy straw mushroom especially Volvariella diplasia for utilization of different feasible and cheap substrates.