The low quality fresh ginseng was fermented by Phelinus linteus or Hericium erinaceum mycelium. This fermented ginseng was extracted by water at 100℃ or water with ultrasonification at 60℃. Total phenolic compounds was improved by ultrasonification extraction process, compare to conventional water extraction. All extracts enhanced the growth of human B and T cells, showing 2.68 times and 3.43 times higher, respectively, than the control. The secretion of TNF-α and IL-6 from human immune cells was enhanced as 3.53×10-4 pg/cell, 3.40×10-4 pg/cell by adding H. erinaceum mycelium fermented ginseng. H. erinaceum mycelium fermented ginseng yielded higher nitric oxide production from macrophage than Lipopolysaccharides (LPS). The cytotoxicity on human normal kidney cell (HEK293) was as low as 20.5% in adding the maximum concentration of 1.0 mg/ml of fermented ginseng. Generally, the extracts from ultrasonification extraction process showed 10% lower toxicity than that by conventional process. H. erinaceum mycelium fermented ginseng had the highest anticancer activity on human lung cancer and stomach cancer cells as 69.33% and 75.32%, respectively at 1.0 mg/ml. It can be concluded that, in general, H. erinaceum mycelium fermented ginseng has relatively better immune and anticancer activities than P. linteus fermented ginseng. Expecially, the extracts treated with ultrasonification had higher activities than that from conventional extraction process.