We evaluated chemical, sensory and mechanical properties of breads containing different amount of Paecilomyces japonica powder to provide the basic informations for the development of functional bread. The pH of dough with 2% Paecilomices japonica powder was the highest but the pH of dough with 3% Paecilomices japonica powder was the lowest. Baking loss rate of bread added 3% Paecilomices japonica powder was the lowest but that of bread added 1% Paecilomyces japonica powder was the highest in that. The result of sensory evaluation showed that bread added 1% Paecilomices japonica Powder was significantly more preferable in chewiness, mouth feel, texture quality and overall quality. Sensory properties of softness, wheat flour odor, moisture, and mouth feel were positively correlated with the acceptability. Mechanical properties of hardness and chewiness had negative correlation with sensory properties, but springiness, gumminess and brittleness had positive correlation with those. The results of various measurements and evaluations showed that the quality of bread containing the Paecilomices japonica powder could be well accepted organoleptically. And this in turn proves the possibility of functional bread by use of Paecilomices japonica.