Methanolic extract of fruiting bodies of Calocybe indica Var.APK2 was evaluated for their anticancer activity against lung carcinoma (A549) cell line. The preliminary phytochemical characterization of the extract using FT-IR recorded the presence of different bioactive compounds, namely alcohols, phenols, aromatics, alkanes, unsaturated esters, carboxylic acid and alkyl halides in their major peaks. The antioxidant potential of Calocybe indica in terms of DPPH radical scavenging assay was evolved as 60% and hydroxyl radical scavenging activity as 66 % using ascorbic acid as standard. The IC50 value of the sample to A549 lung cancer cell line was expressed as 4.9 μg/ml. Apoptosis profile of C.indica was indicated as 80.13% and maximum rate of inhibition (54%) was observed in S phase. These results indicate that C. indica possesses bioactive metabolites and phytochemicals capable of scavenging free radicals and inhibit the growth of A549 lung cancer cell line and suggest their potential for medicinal purpose.