The aim of this paper is to produce bioethanol from lignocellulosic agricultural wastes as rice straw. Various variables was studied and investigated to find out the optimum conditions for highest sugar (and hence ethanol) yield such as: Type of fungi/bacteria used, Incubation time, Temperature of medium and PH of medium. Hydrolysis and fermentation experiments were made to produce bioethanol, other experiments were made to estimate optimum conditions needed for the production of bioethanol with high purity and yield. It was found that the best type of bacteria for fermentation is penicillium. Calorific value of spent rice straw was also investigated and was found to 14.88 MJ/Kg and 36.56 MJ/Kg before and after biosorption respectively showing a high calorific values.