The optimal conditions for mycelial growth of Phellinus linteus ATCC 26710 were determined to be a log length of 20 cm, temperature of $30^{circ}C$ and pH of 6.0. Mycelial growth was excellent on the mushroom complete medium, and was optimal when sucrose, man nose and glucose were supplied as carbon sources. Potassium nitrate and sodium nitrate as nitrogen sources supported good mycelial growth. To evaluate P. linteus mycelial colonization on logs, sterilized short log inoculation, drilling inoculation and log-end sandwich inoculation techniques were used. Only sterilized short log inoculation produced good mycelial colonization. Initial mycelial growth and full mycelial colonization were best on 20 cm logs having 42% moisture content. The initial mycelial growth of P. linteus was accelerated over 12hr of sterilization. Basidiocarp formation was optimal using a burying method of logs after $5{sim}6$ months, and fruiting body formation was superior in cultivation house conditions of $31{sim}35^{circ}C$ and in excess of 96% relative humidity.