Abstract: The aim of the present investigation was to exploit the cheap agro-waste, sugarcane bagasse as a substrate for cellulase enzyme production using Bacillus licheniformis MTCC 429. The cellulase producing ability of B. licheniformis MTCC 429 was assessed using CMC agar plates. The factors affecting cellulase production were optimized by varying the parameters of incubation period, temperature and pH. The maximum cellulase enzyme production was achieved when the production medium pH was maintained at pH 7.0, temperature of 35°C with an incubation time of 48 h. Among the different concentration of sugarcane bagasse hydrolysate tested, CMC medium amended with 5% seemed to exhibit maximum cellulase productivity. Further, the partially purified enzyme was tested for its pH and temperature stability. The properties presented by B. licheniformis MTCC 429 suggest that the strain showed enhanced production of lignocellulose-degrading cellulase enzyme under the optimized conditions. The temperature and pH stability of the enzyme suggested its potential for industrial applications involving elevated conditions.