Dictyophora indusiate (bamboo mushroom) contains bioactive compounds, particularly fiber (13.30-15.17%). Therefore, Lactobacillus acidophilus was encapsulated in alginate beads and alginate-bamboo mushroom beads, with the objective to improve the survival of probiotic after exposure to gastrointestinal fluids. Either egg or fruit body of bamboo mushroom powder at concentrations of 0, 0.8, 1 and 3% (w/v) were added to encapsulate L. acidophilus by extrusion technique. The addition of bamboo mushroom did not influence the size (3.0 mm) and shape of the moist beads as well as encapsulation yield (94-97%), but they resulted in less interconnected network, causing larger pores when compared to alginate bead without bamboo mushroom. However, the beads in combination with bamboo mushroom (survival rate of 63-68%) and without bamboo mushroom (survival rate of 67%) provided greater protection of cells, enhancing their survival in gastrointestinal condition as compared to cells without encapsulation (survival rate of 34%). This study indicated that bamboo mushroom has the capability to be used as a matrix for co-encapsulation of probiotic cells against simulated gastrointestinal condition.