Previous studies indicated that the low molecular weight polysaccharide extracts from Agaricus blazei are potential antitumor agents or adjuvant in tumor treatment. In this study, we investigated the antitumor activity of LMPAB, a low molecular weight polysaccharide isolated from Agaricus blazei, and the molecular mechanisms of its antitumor activity. The antitumor effect of LMPAB was examined using mouse sarcoma 180 (S180) xenograft models. Antiangiogenic effect of LMPAB was determined by chicken embryo chorioallantoic membrane (CAM) angiogenesis and Matrigel-induced neovascularization in vivo models. The mRNA and protein levels of vascular endothelial growth factor (VEGF) were assessed using real-time reverse transcription-polymerase chain reaction, immunohistochemistry, and enzyme-linked immunosorbent assays. Tumor inhibitory rates in the S180 xenograft models were 9.7, 23.9, and 33.0%, respectively, after administration of LMPAB at dose of 50, 100, and 200 mg/kg/day for 2 weeks. LMPAB also inhibited angiogenesis in the CAM model and Matrigel-induced neovascularization in C57BL/6 mice. The mRNA and protein levels of VEGF in tumor tissues were significantly down-regulated in the BALB/c mice received LMPAB treatment. Furthermore, significant down-regulation of serum VEGF levels was also observed in the mice. Our data suggest that LMPAB might be a promising agent for tumor therapy, and the antitumor and antiangiogenic effects of LMPAB may be related with down-regulation of VEGF.