In this study, sugarcane bagasse (2 mm) was pretreated with 2.5% NaOH followed by steaming at 121 degrees C for various time periods. Maximum cellulose content of 81% and delignification of 68.5% were achieved by soaking bagasse in 2.5% NaOH with a residence time of 1 h at room temperature followed by steaming at 121 degrees C for 30 min residence time. The pretreated substrate was analyzed by SEM and FTIR to study the structural modification and functional group of the untreated and pretreated substrates. The pretreated substrate was saccharified by commercial cellulase enzyme depicting 106 mu m mesh size of substrate yields maximum saccharification rate. The saccharified material was fermented by Saccharomyces cerevisiae and Pichia stipitis in mono-and co-culture modes. Maximum product yield (Y-p/5) was observed by monoculture using Saccharomyces cerevisiae after 96 h of fermentation period.