Extriangulated categories were introduced by Nakaoka and Palu by extracting the similarities between exact categories and triangulated categories. A notion of mutation of subcategories in an extriangulated category is defined in
this article. Let $\cal A$ be an extension closed subcategory of an extriangulated category $\C$. Then the quotient category $\cal M:=\cal A/\X$ carries naturally a triangulated structure whenever $(\cal A,\cal A)$ forms an $\X$-mutation pair. This result unifies many previous constructions of triangulated quotient categories, and using it gives a classification of thick triangulated subcategories of pretriangulated category $\C/\X$, where $\X$ is functorially finite in $\C$. When $\C$ has Auslander-Reiten translation $\tau$, we prove that for a functorially finite subcategory $\X$ of $\C$ containing projectives and injectives, $\C/\X$ is a triangulated category if and only if $(\C,\C)$ is $\X-$mutation, and if and only if $\tau \underline{\X}=\overline{\X}.$ This generalizes a result by J{\o}rgensen who proved the equivalence between the first and the third conditions for triangulated categories. Furthermore, we show that for such a subcategory $\X$ of the extriangulated category $\C$, $\C$ admits a new extriangulated structure such that $\C$ is a Frobenius extriangulated category. Applications to exact categories and triangulated categories are given. From the applications we present examples that extriangulated categories are neither exact categories nor triangulated categories.\