This study was carried out to investigate the therapeutic role of the aqueous extract of Pleurotus florida (PF) on thioacetamide induced hepatotoxicity in rats. Thioacetamide at the dose of 600mg/kg body weight orally produced liver damage in rats as manifested by the significant rise in serum levels of aspartate aminotransferase (AST), alanine aminotransferase (ALT), alkaline phosphatase (ALP), bilirubin, cholesterol and decreases the protein level compared with control. The body and liver weight of each animal was determined, to assess any possible weight gain or loss in experimental animals compared with control groups. Oral administration of aqueous extracts of P. florida (100, 200, 400mg/kg) and silymarin (25mg/kg) once daily for 28 days to thioacetamide treated rats shows lowered significantly where as protein level increased. It also shows a significant increase in body weight and decrease in liver weight. The extract alone treated rats did not adversely affect the serum biochemical estimation. Treatment with P. florida (100, 200, 400mg/kg) of the extract revealed a antihepatotoxic action compared with the rats that were administered thioacetamide alone. This study has shown that the aqueous extract of P. florida possesses antihepatotoxic property.