The aim of this study was to evaluate the mycoflora of peanuts (Arachis hypogaea) locally available in Riyadh markets. Infection of peanuts by fungi and their toxic metabolites is a serious problem, as it has adverse effects on human health and also causes loss of economy. Fried – salted, roasted – salted, raw peanuts were analyzed for moisture content (%), peroxide value and mycoflora. Moisture content was found highest in the raw peanuts, next to it was the roasted- salted peanuts and it was found to be lowest in the fried- salted samples. Peroxide value was highest in the fried -salted peanuts followed by roasted-salted and lowest in the raw samples. The most dominant fungal genus was Aspergillus. Results showed that the Aspergillus flavus was the most dominant fungus in all tested samples followed by A. niger and Rhizopus sp. Also, Alternaria alternata, Aspergillus terrus, Cladosporium sp. and Penicillium chrysogenum were isolated from some samples. It was found that the roasting, frying and salting of peanuts have enhanced the lipid oxidation, however it showed a decrease in moisture content and fungal infection. Our results indicate that the peanuts are vulnerable to fungal infection; especially to aflatoxin producing fungi therefore a quality check is required at every stage right from production to consumption of the peanuts. Further research is needed to explore the other means of preventing mould infection; the measures may include the prevention of infection in the field through the use of biological control agents, use of natural preservatives, proper handling of peanuts during storage, processing and transportation.