<p>The mycelial biomass, antioxidant activity and production of extra- and intra-cellular polysaccharides production [EPS, IPS] of <em>Cordyceps militaris </em>strains AG-1, PSJ-1 were evaluated under different submerged liquid culture (SLC) conditions. At 24 <sup>0</sup>C mycelial biomass and polysaccharide production of AG-1, PSJ-1 was optimal using PVC media and static culture conditions; (AG-1: 21.85 ± 1.00; PSJ-1: 18.20 ± 1.84 g l<sup>-1</sup> ), and oven drying at 40 <sup>o</sup>C (AG-1: 25.95 ± 0.84, PSJ-1: 23.55 ± 0.69 mg g<sup>-1</sup>) compared with hot water extraction (AG-1: 7.07 ± 0.15, PSJ-1: 7.39 ± 0.61 mg g<sup>-1</sup>). Maximum biomass, EPS and IPS production were observed when the initial pH was 6.7: AG-1: 12.92 ± 0.33, 209.70 ± 1.56, 32.62 ± 0.87; PSJ-1: 9.03 ± 0.24 g l<sup>-1</sup> , 198.16 ± 0.85 mg g<sup>-1</sup>, 30.63 ± 1.96 mg g<sup>-1</sup>, respectively. The use 3.5 % coconut oil improved biomass, EPS, IPS production, which were 8.27 ± 0.09, 8.01 ± 0.01 g l<sup>-1</sup> ; 1208.00 ± 8.60, 1110.40 ± 7.20 mg g<sup>-1</sup>; 32.43 ± 0.49, 29.74 ± 0.44, for AG-1 and PSJ-1, respectively. Both culture condition and oven drying methods had significant effects on H<sub>2</sub>O<sub>2</sub> and radical scavenging activity, ABTS<sup>.+</sup> radical activity, lipid peroxidation, and also had effects on total flavonoid and, total phenolic contents. The use of crude submerged liquid culture and oven drying on strains AG-1, PSJ-1 led to extracts with potent antioxidant activity, suggesting the therapeutic use of polysaccharides from strains AG-1, PSJ-1. </p>