The present invention provides a method for the preparation of a gluten-containing grain having lowered levels of gluten. The method includes providing a prepared gluten-containing grain which may be optionally sterilized or pasteurized. The prepared gluten-containing grain is then inoculated with a prepared fungal component and incubated. In one embodiment the prepared fungal component myceliates the prepared gluten-contaming grain while incubated and during this process hydrolyzes gluten in the prepared gluten-containing grain. The present invention also includes a gluten-containing grain having lowered levels of gluten which has been prepared by the methods of the invention.