Himachal Pradesh has varied agro-climatic conditions and so this Himalayan state has enormous potentialities for profitable mushroom enterprise. For conducting this study, secondary data was used which was collected from different publications of the state government for the production of mushroom. Growth rate of mushroom production was calculated using the formula of compound annual growth rate available in the literature using time-series data over a period of ten year i.e. from 2013-14 to 2022-23. The findings revealed that Himachal Pradesh has achieved a phenomenal growth in mushroom production estimated at the compound growth rate of 11.15 per cent wherein the growth of private farms stood at 11.22 per cent in comparison to the public sector units of 1.57 per cent per annum. Public sector was also growing significantly (1.57 %) but the pace was much lesser than the private farms. There was decrease in production consecutively in two years especially during the year 2021-22 and further decline was found in 2022-23 in both public as well as private farms. Solan, Shimla, Kangra and Kullu are the prominent district for mushroom cultivation due to suitable climatic condition. The state government actively supports mushroom cultivation through schemes promoting technical training, compost production units and financial assistance to farmers for taking up this venture as their income generating activity. There were certain factors that contributing its growth in Himachal Pradesh. First, Himachal Pradseh’s cool and humid climate naturally suits mushroom cultivation thereby reducing the need for extensive temperature control. Second, increasing consumer awareness about the health benefits of mushroom driving its market demand more and lastly, Directorate of Mushroom Research (DMR) located at Solan plays a key role in the development of mushroom varieties and its cultivation techniques.