Biogas containing approximately 60% methane can be produced from paddy straw -a lingocellulosic waste, by anaerobic fermentation using cattle dung as source of inoculum .The total gas production from the paddy straw is more in comparison to that of cattle dung as substrate. But pretreatment of paddy straw with NaOH can reduce the Holding Retention Time significantly. Moreover paddy straw is able to supply higher yield of biogas due to its slow decomposition .The digested slurry was found to be a very good source of manure. Biogas containing 60% CH4 and 40% CO2 can be produced from various cellulosic wastes .A large number of such types of materials are being utilized commercially for this purpose, viz., human excreta, birds litter, municipal garbage, agricultural residues, wheat straw, sugarcane waste, aquatic weeds etc., are potential sources of biogas generation. Paddy straw having comparatively unspinnable and short fibers are generally wasted or unutilized. In India about 28 million quintals of such type of lightweight waste causes pollution hazards particularly in rural sector.