Mushrooms have been used as food and for therapeutic purpose for decades, and various compounds derived from these have potential biological activities. Application of such agents of natural origin is vital with relevance to an increase in diseases involving immune dysfunction, cancer, and autoimmune conditions in recent years. These compounds belong mainly to polysaccharides, especially ${eta}$-d-glucan, glycopeptide/protein complexes, proteoglycans, proteins, and triterpenoids. Among these compounds, polysaccharides and their peptide/protein derivates have extremely important roles in immunomodulating activities. The present study aims to explore the immunomodulatory properties of polysaccharide isolated from the mushroom Astraeus hygrometricus. The polysaccharide isolated by hot alkaline extraction and chromatography was designated as AE2 and studied for its immunostimulatory potential in vivo in a murine model. Macrophages from treated mice showed higher production of nitric oxide and interleukin-1 and also exhibited an increased phagocytic potential. It also enhanced natural killer cell activation and proliferation of splenocytes with an increase in the T-helper (Th) 1 cytokine level of splenocyte culture supernatant. The cytokine level in serum also indicated a Th1 skew. The observed activities were associated with no general toxicity to the organism. The findings will be helpful in considering A. hygrometricus as a potential source of an immunomodulator and in designing further studies to understand its mode of action on immune system.