We investigated the effect of chemically disinfected wheat straw on the growth and yield of oyster mushroom (Pleurotus ostreatus). Various levels of treatments combined with different time (12, 18 and 24 hours) and dose of Formalin (250, 500 and 750ppm) and Bavistin (75ppm) were used, and the results were compared with the control. Compared to the control, almost all the treatments showed increased values, and among them significantly higher mycelium running rate, the lowest time from stimulation to primordial initiation and to harvest, number of primordial per packet, number of fruiting body per packet were found in treatment consists of 750ppm of Formalin with 75ppm of Bavistin for 18 hours. Length and diameter of the stipe, diameter and thickness of pileus, biological yield, economic yield, dry yield and biological efficiency were also significantly increased in this treatment. Wheat straw treated with 500ppm of Formalin with 75ppm of Bavistin for 18 hours performed best in terms of per cent protein and nitrogen content. However, weight of individual fruiting body As the sterilization of wheat straw using 750ppm of formalin with 75ppm of Bavistin for 18 hours could control pathogens and gave increased yield, this treatment might be useful as an economically effective treatment for the highest yield of oyster mushroom.