The use of agricultural and/or industrial waste materials as a substrate by micro-organisms is an environmentally friendly biotechnology for sustainable development. An efficient biological agent for the reduction of lignoceilulosic materials, a component of agricultural waste, is mushroom mycelium. It is well known that a number of mushroom species are edible, having high protein content with balanced amino acids and several vitamins, as well as some high-value metabolites. Mushroom production could therefore, play an important role in the Caribbean by helping to solve the problem of providing high quality protein. It can also contribute to foreign exchange savings by reducing the levels of current imports. The paper investigates the technical and economic possibility of producing tropical mushrooms, and the potential for their incorporation into the agricultural sector in the Caribbean.