The microwave-assisted fluidized bed two-stage novel, energy-efficient drying method was used for Agaricus bisporus drying which can be further utilised for mushroom protein powder, and soup. The effect of microwave heating time (MHT), fluidized bed drying temperature (FBDT), and slice thickness (ST) on rehydration ratio, total colour difference (TCD), and overall acceptability of white button mushroom (WBM) powder was investigated. The optimized values, i.e., 1 min (MHT), 60 °C (FBDT), and 2 mm (ST), were obtained during optimization using design expert software (ver. 13.0.1). The result revealed that MHT, FBDT, and ST affect the responses significantly. TCD was found to be increased while overall acceptability decreased as MHT and FBDT increased. Rehydration is an important criterion for using dry products in curry or soup since they may absorb water. The optimized WBM (O-WBM) powder was used to prepare the soup mix. Out of three formulations (F1, F2, and F3), F3 had a 9 % O-WBM powder score with a maximum mean value for colour, taste, flavor, consistency, and overall acceptability, followed by F2 with a 7 % O-WBM powder. The soup’s composition includes functional ingredients such as garlic, shallots, and milk powder, making it healthier.