This study was conducted to evaluate the antioxidative effect and antimutagenic capacity of ethanol extracts of Flammulina velutipes by employing biological and biochemical assays. The $IC_{50}$ of MDA with BSA conjugation reaction, lipid peroxidation and scavenging effect on DPPH radical in ethanol extracts of Flammulina velutipes was found to be 28.39 mg/assay, 9.33 mg/assay and 144.61 mg/assay respectively. Therefore, the most effective antioxidative capacity of ethanol extracts of Flammulina velutipes was $Fe^+$-induced linoleate peroxidation, among the method used this study. The indirect and direct antimutagenic effects of the ethanol extracts of Flammulina velutipes were examined by the Ames test using Salmonella typimurium TA98 and TA100. The inhibition rates on indirect mutagenicity mediated by 2-anthramine and on direct mutagenicity mediated by sodium azide in Salmonella typimurium TA100 and mediated by 2-nitrofluorene in Salmonella typimurium TA98 were 0%, respectively. These findings indicate that ethanol extracts of Flammulina velutipes have no effects on indirect and direct mutagenicity. Based on these results, it believed that the ethanol extracts of Flammulina velutipes has antioxidative capacities, and is a the candidate for the prevention and dietetic treatment of chronic diseases and the development of antioxidative functional food.