Mycelia of Pleurotus ostreatus, Phellinus linteus, Ganoderma lucidum and Lentinus edodes were cultured in the selected cereals to generate functionally active cereals. The optimum water contents for the mycelial growth were 50%(wt/wt) for brown rice, barley and soybean and 75% for wheat and corn, respectively. P. ostreatus grew well in the most cereals while the mycelial growth of P. linteus, G. lucidum and L. edodes in soybean were siginificantly retarded. The contents of β-glucan and glucosamine in the mycelial cereals were determined. Wheat cultured with mushroom mycelia showed high ß-glucan content. Especially, wheat with G. lucidum contained the highest value of 26.16%. Soybean cultured with G. lucidum showed two-fold increase in glucosamine content with 9.63% of total mass while wheat showed 7.91%. Overall, wheat cultured with G. lucidum was the best functional cereal in terms of β-glucan and glucosamine contents.