This study aimed to evaluate the effect of adding fresh mushrooms powder on the physicochemical and nutritional qualities of cakes. The mushroom powder was incorporated in cake formulations at 0%, 5%, 10%, and 15% by weight. Various quantities of mushroom powder have been shown to affect cakes' physicochemical and nutritional qualities. In which mushroom powder cake had higher protein and fat content and lower carbohydrate content than the control cake. Sensory analysis results showed that the mushroom powder cake had a distinct color and flavor from the control cake. The texture of the mushroom powder cakes was similar to the control cake. The cake containing 10% to 15% mushroom powder was found to be the most satisfactory. It can be concluded that the cake containing 10-15% of mushroom powder could be used industrially in cake compositions to achieve acceptable cake quality.