The potential for using agricultural and industrial by-products as substrate for the production of the edible mushroom, Auricularia polytricha, was evaluated using several formulations of selected palm oil wastes mixed with sawdust and further supplemented with selected nitrogen sources. The best substrate formulations were sawdust (SD) mixed with oil palm frond (OPF; 90:10) added with 15% spent grain (SG) and sawdust mixed with empty fruit bunch (EFB; 50:50) added with 10% spent grain (SG) with mycelia growth rate of 8 mm/day and 7 mm/day respectively. These two substrate formulations were then subjected to different moisture content levels (65%, 75% and 85%). Highest total fresh sporophore yield at 0.43% was obtained on SD+OPF (90:10)+15% SG at 85% moisture content, followed closely by SD+EFB (50:50)+10% SG with 0.40% total yield, also at 85% moisture content. Each of the substrate formulations at 85% moisture content gave the highest biological efficiency (BE) at 288.9% and 260.7%, respectively. Both yield and biological efficiency of A. polytricha on these two formulations were almost three times higher when compared to sawdust substrate alone, thus proving the potential of these formulations to improve yield of this mushroom.