Ganoderma lucidum is a high value mushroom used in oriented medicine for its anti-tumor and immunoregulatory effects. Here we determined one commercial Ganoderma product, Tein-Shan Ganoderma (TSG), for its immunomodulatory activity. In murine monocytic RAW264.7 cell line model, we found that the extracts of TSG did not affect cell viability of macrophages but caused cell morphology change under the treatment of TSG methanol extracts. Moreover, TSG extracts significantly inhibited nitric oxide (NO) synthesis in RAW264.7 cells stimulated by LPS. The suppression of NF-kB activation by LPS is correlated with the reduction of NO production under TSG administration. Our study shows that TSG plays a role in the suppression of inflammatory response in monocytic cells.