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The study examined the perceived benefits and knowledge level of the mushroom farmers on mushroom production in selected local governments area of Oyo State, Nigeria. The data obtained were analyzed with frequency, percentage, mean and standard deviation. Multistage sampling procedure was used to select 143 respondents using questionnaire and interview schedule. From the result it was affirmed that the majority (63.0%) of the respondents were males, also about 81.8% of the farmers were married. Radio (96.5%) was the most common source of information available to farmers, seconded by family and friends 86.0%. Based on the distribution of the knowledge level of farmers in mushroom production (63.6%) of the farmers had highest knowledge in mushroom production with the mean score (9.28). Majority (64.3%) of the mushroom farmers perceived mushroom production to be of benefit to them, with the mean score (10.35). It was concluded that majority of the farmers that had knowledge of mushroom production needs training in some specific aspects of the production process. It is recommended that research institutes, extension agents and Non-governmental organizations needs to organize training to enlightened and provide necessary information needed to the farmers on mushroom production.