Abstract: Various grass-substrates, JUNCAO, used in cultivating Ganoderma lucidum were studied to determine their effects on the mycelial growth, yield, biological conversion rate, nutrient composition, and heavy metal content of the medicinal fungi. The results showed that the mycelial growth rate and nutrient contents of G. lucidum cultivated in two media formulated with JUNCAO were greater than those of control. The yield and biological conversion rate were found to be similar to control, while heavy metals in the fruiting bodies of the fungi were below the limits of the National Food Safety Standards. It appeared that Formula 1 (containing 30% of Dicranopteris dichotoma, 53% of Pennisetum giganteum, 15% of wheat bran, 2% of gypsum) or Formula 2 (containing 30% of D. dichotoma, 53% of Miscantuus floridulus, 15% of wheat bran, 2% of gypsum) could adequately replace sawdust in cultivating G. lucidum.