Phellinus linteus is known as a medicinal mushroom, which has the pharmaceutical activity on tumors and inflammatory diseases in traditional Oriental medicine. However, despite extensive pharmacological studies on P. linteus, the liquor of fermentation using mycelium of P. linteus(LFMP) has not been investigated. In the present study, it was examined the effect of the evaporating extract from LFMP(E-LFMP) on the expression of inflammatory proteins and the generation of reactive oxygen species in human hepatocarcinoma HepG2 cells. E-LFMP inhibited acetaldehyde-induced morphological change in HepG2 cells. Also, E-LFMP inhibits expression of inflammatory proteins including cyclooxygenase(COX)-1 and COX-2 through suppressing nuclear translocation of nuclear factor κB(NF-κB) and degradation of inhibitory κBα(IκBα). In addition, E-LFMP inhibits generation of reactive oxygen species(ROS) by hydrogen peroxide(H₂O₂) in HepG2 cells. These results suggest that LFMP has the pharmaceutical, especially anti-inflammatory, activity similar to P. linteus mushroom.