The present study was carried out to examine the antioxidant activity in oyster mushroom cultivated on selenium (Se) rich substrate. Pleurotus fossulatus was cultivated on Se-rich wheat straw collected from the seleniferous belt of Punjab (India) and its potential to accumulate Se from substrate was examined. Using different assay systems the modulations in the anti-oxidant profile of Se enriched mushroom was studied in comparison to the mushrooms cultivated on normal straw. The oyster mushrooms were observed to potentially mobilize Se from Se-rich substrates to fruiting bodies, resulting in significantly high uptake (37.2±0.6 μg g−1) as compared to control (3.57±0.53 mg g−1). The antioxidant activity, as determined by various assays, such as reducing power, 2,2-diphenyl-1-picrylhydrazyl free radical scavenging, and metal chelating activity, was higher in the experimental mushrooms when compared to control. The results obtained demonstrate that Se-fortified mushrooms through cultivation on straw containing organic forms of Se can be considered as natural and effective dietary supplements of organic Se for humans. The present study proposes the use of Se-rich agricultural residues as substrates for mushroom cultivation for human and livestock supplementation.