The domestication and optimization of cultural conditions for the secondary mycelial growth was determined to establish the production technology of Panaeolus species. Wild P. antillarum and P. cyanescens were collected and their cell lines were rescued. The mycelial growth performance was evaluated on different indigenous culture media (carabao, cow and horse dung) and physical factors (pH, aeration and illumination). The optimal growth condition for basidiocarp production using dung of domesticated ruminants was also determined. Both secondary mycelia of the two Panaeolus species evaluated grew best on solid culture media of carabao and cow dung decoction gulaman (local crude agar) at a pH range of 7.5 - 8.0, incubated in unsealed and dark condition. Carabao and cow dung as substrates favored the fast mycelial colonization of both mushrooms with means of 11.20 ± 4.24 and 11.50 ± 5.80 days, respectively. However, regardless of the substrate, P. antillarum colonized the substrates in a shorter period of 9.37 ± 2.74 days. In terms of yield, carabao dung had the highest mean yield of 7.16 ± 0.75 g with 17.89 ± 1.88% bio-efficiency, which did not significantly vary with cow dung having a mean yield of 6.99 ± 1.89 g with 17.49 ± 4.73% bio-efficiency. These significant results suggest that P. antillarum and P. cyanescens are new Philippine strains of wild mushrooms with great potential for cultivation for nutraceutical purposes.