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Country Mushroom Gravy is a great alternative to sausage gravy if you’re making biscuits and gravy and can easily be made into a vegan or vegetarian recipe.

This homemade mushroom gravy is made from dehydrated mushrooms. If you’re looking for a meat free alternative when making biscuits and gravy, this country mushroom gravy tastes and feels so much like it has sausage!

black plate with two homemade buttermilk biscuits topped with vegetarian country mushroom gravy

I wanted to make a Country Mushroom Gravy as a meat free alternative to sausage gravy. I thought about using fresh mushrooms, but I decided to try using the HUGE container of dehydrated mushrooms I got at Costco awhile back. I really wasn’t sure how this mushroom gravy recipe would turn out, but I was so pleasantly surprised!

How to make this recipe:

  • You see, dehydrated mushrooms need to be rehydrated, and even when they are they can be quite chewy. I decided to run the dehydrated mushrooms thru the blender to chop them up into teeny tiny little pieces and rehydrate them in hot broth. This texture actually made the mushrooms feel a bit like sausage!
  • Next I cooked up onion and garlic in some butter. If you want to make this a vegan mushroom gravy, simply use olive oil or a vegan spread like Earth Balance.
  • I added some flour to create a roux. Then I added in the rehydrated mushrooms and broth along with some milk. If you need vegan or dairy free options, you can substitute the milk with almond, coconut, or even hemp milk. I seasoned the mushroom gravy with thyme, salt and pepper.
looking down at a plat of biscuits and country mushroom gravy

Love biscuits and gravy? You’ll love these recipes:

homemade flaky biscuits smothered in vegetarian country mushroom gravy

Country Mushroom Gravy

Prep15 minutes
Cook20 minutes
Total35 minutes
Servings 8 servings
Country Mushroom Gravy is a great alternative to sausage gravy if you’re making biscuits and gravy and can easily be made into a vegan or vegetarian recipe.


  • 2 cups dehydrated mushrooms turns into 1 cup after getting chopped up
  • 1/2 cup vegetable broth heated (or can use chicken broth)
  • 4 tbsp butter or vegan Earth Balance
  • 1/2 yellow onion minced
  • 3 cloves garlic
  • 2 tbsp all purpose flour
  • 1 1/2 cups milk (can use almond or coconut milk)
  • 1 tsp fresh thyme fresh recommended, but 1/2 tsp dried will work
  • 1 tsp salt
  • 1 tsp freshly ground pepper


  • Pulse dehydrated mushrooms in high powered blender (I used my Blendtec) until all pieces are about a quarter inch in size or less. Soak in hot broth to rehydrate.
    chopped up dehydrated mushrooms
  • In a heavy bottom stockpot over medium high heat, melt butter. Add onion, stir, and saute until onion is soft and starting to turn golden brown. Add garlic, stir, and cook for another minute. Add flour, stir, and cook while stirring frequently until flour starts to turn golden brown and smells like a savory pie crust, 3-5 minutes.
  • Add broth with the mushrooms, milk, thyme, salt and pepper to the mixture. Whisk to combine and continue whisking over heat. Cook mixture just until desired thickness is achieved. You may add more broth or milk to thin, if needed.
  • Serve hot over biscuits, eggs, meatloaf, mashed potatoes – anything your heart desires.


To make this recipe vegetarian, simply substitute the chicken broth with vegetable broth.
To make this recipe vegan, swap out the broth as listed above. Use olive oil or Earth Balance in place of the butter and coconut milk in place of the milk.


Calories: 111kcal, Carbohydrates: 10g, Protein: 2g, Fat: 7g, Saturated Fat: 4g, Cholesterol: 19mg, Sodium: 416mg, Potassium: 194mg, Sugar: 2g, Vitamin A: 250IU, Vitamin C: 2.3mg, Calcium: 57mg, Iron: 0.2mg

Nutrition information is automatically calculated, so should only be used as an approximation.

Did you make this? Leave me a comment below

Hi! I’m Krissy.

I love to create the BEST versions of your favorite recipes. If you love to cook, love to eat, or just have a deep appreciation for good food, you’re in the right place! Stick around… I have hundreds of recipes for you to make.

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    1. I’m always in favor of using fresh mushrooms, but for this recipe and to get the consistency of meat gravy, I highly recommend using dehydrated mushrooms.