The objective of the study is to extract ergothioneine from oyster plueteuros mushroom and encorporate in yoghurt to enhance the nutritional quality of the product, also now a days there are lot of diabetic patients, to reduce this disease sugar is replace with stevia which is 50 to 300 times sweeter than sugar. As ergothioneine is a bioactive compound which is native source of amino acid derived from oyster mushroom (pleurotus spp.) ergothioneine contains the antioxidant property which can help to protect cells from free radicals. Yogurt was prepared by using lactobacillus casein. The concentration of ergothioneine added in S1, S2 and S3 was 0.1,0.2 and 0.3 respectively, also stevia was added for sweetness. sensory evaluation was conducted on 9-point hedonic scale. The overall acceptability of product was good. Incorporation of ergothioneine in yoghurt increases the ash, moisture, fat, carbohydrate and protein. This suggest that ergothioneine has positive impact on health by addition of ergothioneine as bioactive compound in yoghurt.