To study the best substrate for the Indian subcontinent, four different substrates (sawdust + wheat bran, wheat straw + wheat bran + corn cobs, sawdust + corn cobs and wheat straw + wheat bran) were screened for six different Flammulina velutipes strains. The antioxidant and antibacterial properties were studied for these strains. In study it was found that the strain DMRX-767 and DMRX-768 were the most promising for yield and biological efficiency in all substrates and wheat straw + wheat bran being the best with respect to BE. To corroborate the findings, the best strain and best substrate trails were repeated. DMRX-767 and DMRX-768 were the most promising for yield and biological efficiency in all substrates, with wheat straw+wheat bran were again found the best. The methanolic extract of strain DMRX-166 showed highest antibacterial properties as highest inhibition is found for Bacillus subtilis and Pseudomonas syringae. However, DMRO-253 inhibited Ralstonia solanacearum and Xanthomonas campestris. DMRX-768 has the best scavenging ability followed by DMRO-253.