The effects of nitrogen in the medium on the production of mycelial biomass, extracellular polysaccharides (EPS), and intracellular polysaccharides (IPS) was investigated in submerged cultures of Grifola frondosa. In addition, the effects on pellet morphology were examined. The maximum production levels of mycelial biomass (2.32 g/L), EPS (1.58 g/L), and IPS (29.1 mg/L) were obtained when the nitrogen sources in the medium were yeast extract, malt extract, and peptone, respectively. Using yeast extract as the nitrogen source yielded the maximum mycelial biomass, and morphological characterization revealed a composition of 47% large pellets (fraction L), 20% small pellets (fraction S), and 33% adhesive mycelia (fraction A). The maximum circularity value and the minimum roughness value of the pellets were observed using yeast extract cultures. Both the compactness (0.53) and circularity (0.15) of the pellets were the lowest among the seven types of nitrogen sources, but the roughness (2.86) was the highest in malt extract, which was the nitrogen source that resulted in maximum polysaccharide production. The results revealed that the production levels of mycelial biomass, EPS, and IPS of G. frondosa were associated with changes in pellet morphology due to the source of nitrogen in the medium.