Polyporus umbellatus (Syn. Grifola umbellata) is a sclerotium forming mushroom belongs to family Polyporaceae of Polyphorales, Basidiomycota. The sclerotia of P. umbellatus have long been used for traditional medicines in China, Korea and Japan. This study was initiated to obtain the basic data for artificial sclerotial production of P. umbellatus. Here, we investigated the favorable conditions for mycelial growth of P. umbellatus and its symbiotic fungus Armillaria mellea. We also evaluate the favorable carbon and nitrogen sources for sclerotial formation in dual culture between P. umbellatus and A. mellea. The favorable conditions for mycelial growth of P. umbellatus were $20^{circ}C$ and pH 4, while optimal conditions for mycelial growth of A. mellea were $25^{circ}C$ and pH 6. The carbon sources for optimal mycelial growth of P. umbellatus were fructose and glucose, while carbon sources for favorable mycelial growth of A. mellea were also fructose and glucose. The nitrogen sources for favorable mycelial growth P. umbellatus were peptone and yeast extract, while optimal mycelial growth of A. mellea were obtained in peptone and yeast extract. When P. umbellatus and A. mellea were dual cultured on carbon sources, sclerotia were induced on basal media supplemented with glucose, fructose and maltose at pH 4~6, while nitrogen sources inducing sclerotia were basal media supplemented with peptone and yeast extract for 60 days at $20^{circ}C$ under dark condition.