Abstract: An investigation on the improvement of Yasothon soil (Oxic Paleustults) fertility by Khon Kaen`s municipal fermented waste was carried out at Khon Kaen University for the treatments with and without sowing Panicum maximum TD 58 grass. The results showed that Khon Kaen`s municipal waste had a tremendous effect in improving Yasothon soil fertility. Decomposition rate of organic compost in soil was most rapid due to high environmental temperature. The improvement of soil fertility was greater for treatments with the growth of Panicum maximum TD 58 grass than those without. An increase in the amount of organic compost added to the soil increased the percentages of soil nitrogen, soil available P and exchangeable K. Municipal organic compost increased soil pH, but a greater result was found for treatments with the growth of Panicum maximum TD 58 grass. Municipal waste contented the majority of plant materials and garbage and they should be sorted out daily and recycled as a fermented compost to improve soil fertility for better crop production and sustainable agriculture.