Pleurotus spp. are white-rot fungi that utilize different agro-wastes to produce useful biologically active compounds. In this study, exopolysaccharides (EPS) were produced by Pleurotus pulmonarius in submerged culture supplemented with different agro-wastes. Functional groups in EPS were revealed using Fourier Transform-Infrared (FT-IR) spectroscopy. Antimicrobial activity of EPS was tested against microorganisms using agar well diffusion. Scavenging potentials of EPS was tested against 1, 1- diphenyl-2-picryhydrazyl (DPPH), hydroxyl (OH), iron (Fe 2+ ) and nitric oxide (NO) radicals. In vitro prebiotic activity of EPS was carried out. The highest yield (5.60 g/L) of EPS was produced by P. pulmonarius in submerged culture supplemented with groundnut shell (20.0 g/L). The functional groups in EPS were hydroxyl (-OH), methyl (-CH 3 ), ketone (-RCOH) and carbonyl group (-C=O). EPS displayed zones of inhibition (5.00–14.00 mm) against tested microorganisms. Scavenging activity of EPS ranged from 65.70-81.80% against DPPH. EPS supported the growth of Lactobacillus delbrueckii and Streptococcus thermophiles with values ranged from 3.04 × 10 4 –3.40 × 10 4 cfu/ml and 2.50 × 10 4 –2.81 × 10 4 cfu/ml, respectively. Submerged culture of P. pulmonarius with addition of agro-wastes enhanced yield of EPS. The EPS exhibited bio-functional properties like antimicrobial, antioxidant and prebiotic activities. Hence, agrowastes can be recycled in submerged fermentation with fungi to produce promising biomaterials for biopharmaceutical applications.