Infrared-hot air method, when properly applied, can be used for achieving a high-quality product. The objective of this study was to determine the rheological properties of cake batters and physico-chemical, textural and sensory properties of sponge cake supplemented with four different levels (control, 5 %, 10 %, and 15 %) of button mushroom powder. The button mushroom slices were dried in an infrared–hot air dryer (250 W and 60 °C). The physical (volume, density, color) and chemical (moisture, protein, fat and ash) attributes were determined in the cakes. Increasing the level of substitution from 5 % to 15 % button mushroom powder significantly (p < 0.05) increased the protein and ash. The apparent viscosity in cake batter, and volume, springiness, and cohesiveness values of baked cakes increased with increasing button mushroom powder levels whereas the density, consistency, hardness, gumminess, chewiness and crumb L, b values of samples showed a reverse trend. Sensory evaluation results indicated that cake with 10 % button mushroom powder was rated the most acceptable.