In this investigation, the effect of different drying techniques, such as freeze-drying and cabinet drying, with two different carrier agents, such as maltodextrin (MD) and soy protein isolate (SPI), at different levels (10, 15, and 20%) on button mushrooms has been revealed. The results showed that the button mushroom powders (BMPs) formulated with SPI as a carrier agent had significantly higher powder yield, hygroscopicity, L*, a*, and b* values, whereas BMP formulated with MD had significantly higher water activity, solubility index, tapped density, bulk density, and flowability. The highest retention of bioactive compounds was reported in freeze-dried mushroom powder compared to cabinet dried powder using SPI as a carrier agent. Fourier transform infrared (FTIR) analysis confirmed that certain additional peaks were produced in the mushroom button powder-containing SPI (1,035–3,271 cm−1) and MD (930–3,220 cm−1). Thus, the results revealed that SPI showed promising results for formulating the BMP using the freeze-drying technique.