Consumption of mushroom has increased remarkably because of their desirable aroma, taste and high nutritional content. Wild edible mushrooms are well known for their nutritious and antioxidant properties. The present study was conducted to evaluate chemical composition and nutritional values as well as evaluate the quality characteristics of sponge cake supplemented with Libyan wild edible mushroom(Agaricus bisporus). The results showed that wild edible mushroom contained high levels of proteins, fiber and total phenols and contained bioactive compounds as flavonoids, anthocyanins, tocopherols, ascorbic acid, β-carotene and lycopene. Wild edible mushroom contained considerably high amounts of minerals which the most abundant elements were potassium, calcium, sodium and magnesium followed by the iron, zinc and copper. Wild mushroom was rich source of essential and non-essential amino acids which eighteen amino acids were described. The major unsaturated fatty acids found in the studied samples were linoleic acid (C_18:2) and oleic acid (C_18:1), and the major saturated fatty acid was palmitic acid (C_16:0). Chemical composition and sensory evaluation of sponge cake supplemented with 20% mushroom powder showed that prepared cake contained more protein and fiber and cake rated the most acceptable. Due to the investigated bioactive compounds of Libyan mushroom and its well-balanced nutritional profile, this mushroom can be consumed as functional food and further used as a medicinal ingredient.