Wheat flour is staple diet and is mainly consumed in the form of chapatti and bread in Pakistan. Wheat is deficient in lysine which is the first limiting amino acid in wheat. Proteins are indispensable constituents of human diet and are considered crucial for the growth, maintenance and repair of the body tissues. They are one of the essential building blocks of all life. The objective of this study was to prepare the composite flour by blending straight grade flour with oyster mushroom powder (OMP) in different proportions for the baking of bread. The flour was also evaluated for rheological properties. The supplemented bread was subjected to sensory evaluation and physical analysis by Farinograph measurements of the following characteristics affected by mushroom powder: water absorption, dough development time, softening of dough, dough stability and mixing tolerance index. Results showed that OMP increased water absorption capacity of dough with highest absorption recorded in T5 (66.4%) and minimum in T0 (56.4%). Dough development time increased with the increasing amount of OMP. It was minimum in T0 (1.5 min) and maximum in T5 (4.6 min). The capacity of dough to get soft also increased with increasing treatment level. Dough stability also decreased with increasing level of OMP. Mixing tolerance index was also significantly affected by OMP. Results of amylograph indicated that peak viscosity increased from 1595 to 1700 BU from T1 (3% mushroom powder) to T5 (15% mushroom powder) with the increase of OMP.