The Peanut kernels (Arachis hypogaea)variety Giza-5 were roasted by heat at 160°C for 30 min or subjected to gamma irradiation at dose levels of 5,7.5 and 10kGy. Samples were packed in kraft paper and another were packed in muslin bags. Then all samples were stored for six months at ambient temperature. The inhibition of fungal flora and their toxins plus inactivation the antinutrional factors were studied. The data reflected that, 13 species of fungi from peanut kernels belonging to 7 genera were isolated and identified. The greater number of species held to A. flavus, A. parasiticus, A. niger and A. fumigatus.Whereas observed as the predominated Aspergillus spprecorvered from both the non surface – sterilized and surface – sterilized kernels containing fungi were more than the surface – sterilized. The results indicated that only 43 isolate from 211 were able to produce aflatoxin. The higher amounts of aflatoxins B₁ (285.12 ug. g^K-1) and B₂ (216. 63 ug g^K-1) were recorded by peanut kernels infested with A. flavus. Therefore, gamma irradiation (5-10 KGy) are suitable to insure the preventation of aflatoxin production in peanut kernels packed in kraft paper for extending shelf life to six months. Gamma irradiation or roasting process exhibited significant reduction (p < 0.001) of antinutrional factors i.e vicine, tyrpsin inhibitors and hemagglutinating activity before and after storage. Whereas, the higher inactivation was occurred in the hemagglutinin than other factors. Whereas, the reduction rate was reached 96.88% of hemagglutinin after immediately peanut kernels roasted or irradiated at 10kGy.