Due to its high water retention- , high cation exchange-capacity and low bulk density, Peatmoss is commonly used as a major constitute of green house beddings; however, because of its high price more nesearch is needed to find cheaper alternatives. On the other hand, rapidly growing industrialization and dense agricultural activities, led to production of huge quantities of different plant residues as organic wastes that are mainly buried, burned or simply dumped on the lands causing sever environmental problems. The occupation of high quality lands with the above mentioned wastes is also another important concern. In recent years, the application of earth worms to recycle a wide range of organic waste residues into vermicompost received considerable attention. The appropriate physical and chemical properties of vermicompost as a suitable amendment for soil and other plant beddings have been well known. In this work, vermicomposting of simple and nutrient enriched button mushroom bedding wastes investigated to produce a substitute for Peatmoss in growing pepper seedlings. The approximate mushroom beddings waste production in the country is about 185000 tons annually which is abandoned in the environment with no specific use. One kg of Essinia foetida per 50 kg of substrate and an incubation period of 45 days applied for vermicomosting. The appropriate levels of blood powder, phosphate rock powder and shells powder were also used for the enrichment. The produced vermicomposts then used as bedding substrates as alternatives of Peatmoss to grow pepper seedlings .The experiment performed in a completely randomized design with 5 treatments and 3 replicates. The treatments were: Peatmoss (100 percent), simple Vermicompost (100 percent), enriched Vermicompost(100%), Peatmoss (50%) + simple Vermicompost (50%), Peatmoss (50%) + enriched Vermicompost (50%). The pepper seeds planted in planting trays filled with the experimental beedings and the seedlings grown for 50 days in green house condition. The seedlings were then analyzed for some growth parameters and harvested for fresh and dry biomass measurements of roots and shoots as well as nutrient concentration and uptake of the plants. The results showed the maximum seedling length in Peat Moss + enriched vermicopost followed by Peatmoss + simple vermicompost, while the minimum length was in Peat Moss treatment. The maximum nutrient concentrations of nitrogen, calcium, phosphorus, iron and zinc in roots were observed in enriched vermicompost. The shoots concentration of calcium, sodium, magnesium and iron was maximum in enriched treatment while, the highest concentrations of phosphorus, nitrogen and potassium of shoots were in Peatmoss + enriched vermicompost. Considering the plant growth parameters and the nutrient concentrations in the bedding substrate as well as in the plant materials, the enriched vermicompost showed a better performance than Peatmoss as the seedlings bedding, therefore this compound could be introduced as an appropriate alternative to Peatmoss for seedlings production. Application of the introduced vermicompost in different green house production showever, needs more investigations. Key words :Peatmass, Vermicompost, Mushroom Waste, Capsicum