The effect of Tragacanth gum (TG) coating incorporated with 100, 500 and 1000ppm Satureja khuzistanica essential oil (SEO) on the postharvest quality and shelf life of button mushroom (Agaricus bisporus) stored at 4±1°C for 16days was investigated. Weight loss, firmness, browning index (BI), total phenolics, ascorbic acid, microbial and sensory quality were measured. The results indicated that treatment with TG containing SEO (TGSEO) maintained 92.4% tissue firmness, and reduced microorganism counts, such as yeasts and molds and Pseudomonas, compared to uncoated samples. Furthermore, mushrooms treated with TGSEO coating exhibited up to 57.1% decreased in BI, significantly higher levels of total phenolics (85.6%) and ascorbic acid accumulation (71.8%) than control and its efficiency was better than that TG coating alone. Sensory evaluation demonstrated the capability of TGSEO coating for preserving the quality of mushroom during the storage. The results obtained endorse that application of TGSEO coating might be a simple and effective technique for prolonging their postharvest shelf life of mushroom by up to 16days.