Cake manufacturers face a major problem of lipid oxidation and mould growth which limits the shelf- life of their products. Mould growth on bakery products during storage is a serious economic problem Spoilage moulds are commonly Penicillium, Mocur, Rhizipus and aspergillus species. Lipid oxidation occurring in Cakes is one of the major concerns in food technology. It is responsible for rancid odors and flavors of the products, with a consequent decrease in nutritional quality and safety caused by the formation of secondary, potentially toxic compounds. There is a growing interest in natural antioxidants and antifungal found in plants because of the world-wide trend toward the use of natural additives in food and cosmetics. Herbs and spices are one of the most important targets to search for natural antioxidants and antifungal from the point of view of safety. In the present study, ethanol extracts of some spice and herb were assessed for their total phenol content, and antioxidant activity (iron (III) reduction and 1,1-diphenyl-2-picrylhydrazyl). Cinnamon, lemon balm and clove showed the best performance in the iron reducing assay. In the DPPH assay cinnamon, alhagi, clove were most effective among plant extracts tested. The antifungal activity ethanol extract of clove, valerian and cardamom were superior to all other extract. In the second section of this project The antioxidant and antifungal activity of cake treated with some plant extract and essential oils, was determined by TBA assay and antifungal assayduring 12 weeks storage. Ajwain, camel thorn and lemon balm were found to be effective in retarding mould growth and rancidity cakes during 12 weeks storage at temperature environment.