Papad is familiarly known as an Indian food adjunct or snack food. In this study, attempts have been made to increase the protein, minerals and crude fibre content of the papad with incorporation of Pleurotus sajor-caju powder to develop a novel snack food. Mushroom powder was added in different proportions with other ingredients of the papad and the prepared papad was subjected to physicochemical and sensorial analyses. Mushrooms pretreated with 1% potassium metabisulphite followed by whey treatment had better colour and reduced drying time. Drying at 50°C produced more amount of mushroom powder (350 μ) and had higher acceptability of rehydrated samples. The papad enriched with 20% mushroom powder showed increased values of protein (15.8%), minerals (38.87%) and crude fibre (218.18%) content and had maximum sensory score. Therefore, papad supplemented with oyster mushroom powder may help to reduce protein malnutrition, constipation and mineral deficiency disorders.