Cryptococcus albidus and Saccharomyces cerevisiae was used for separate hydrolysis and fermentation of sugar cane bagasse for production of ethanol. Lignocellulolytic enzymes, CMCase (34 U/ml), FPase (3 U/ml), beta-glucosidase (2.3 U/ml), laccase (32 U/ml), and xylanase (12 U/ml), were assayed by fungus, however, after optimization of process parameters, an increase of 1.5-fold sugar (375 mg/g) from bagasse and production of lignocellulolyic enzymes were determined. The sugar produced by sugar cane bagasse was subsequently treated by Saccharomyces cerevisiae, indicating enhanced production of ethanol at 40 h was 38.4 g/L, reached to a maximum at 50 h, and then it was decreased.