The grey oyster mushroom, Pleurotus sajor-caju (PSC), is a common edible mushroom and is now grown commercially around the world for food. This fungus has been broadly used as food or food ingredients in various food products for a long time. To enhance the nutritional quality and sensory attributes of bakery-based products, PSC powder is used in the present study to partially replace wheat flour in baked product formulations. The nutrient content and sensory properties of rice-porridge and unleavened bread (paratha) incorporated with various levels of PSC powder were studied. These food items were formulated with either 0%, 2%, 4% or 6% of PSC powder. Results show PSC powder recorded β-glucan at 3.57g/100g. In sensory evaluation, consumers gave higher score to both rice-porridge and paratha bread containing 2-4% PSC compared to those that are not added with PSC powder. The paratha containing 4% PSC powder can be formulated with the intention in improving overall acceptability of paratha bread. Meanwhile, for rice-porridge, consumers prefer the formulated product added with 4% PSC powder. In conclusion, the addition of PSC powder to partially wheat flour can be recommended for the purpose of enhancing nutritional composition and maintaining the acceptability of carbohydrate-based products.