Phellinus merrillii is a non-edible, very common mushroom found on a jack fruit tree mostly used in western part of Maharashtra. It is used by tribal people to cure sour mouth; excessive salivation etc. Variety of experimental systems is used to screen toxicity including animals. In the present study rats were used for the experiments. The water soluble polysaccharide (WSP) complex has been isolated by chilled alcohol extraction method from Phellinus merrillii and purified to study its effect on Albino mice. Different doses (20%, 40%, 60%, 80% & 100%) of solutions mixed with wheat flour and given to each mouse each day for 8 days. And their physical and histological effects were studied. Maximum hair loss and sleeping mode is observed when the dose of the extracted polysachharides is increased on mice. Stool color of the mice also changes with increasing concentration of polysaccharides. Harmful effects of extracted polysaccharides are observed on kidney, liver, spleen and pancreases.