Abstract: The bioconversion of cellulose is important for global stabilization and a sustainable human society. In this study, efficient cellulolytic bacteria were screened and isolated from decayed lignocellulosic waste. Among the isolates, three strains, NASCB-5 , NASCB-8 and NASCB-12 showing higher potential for cellulase production were purified and sub cultured on carboxymethyl cellulose (CMC) agar plates. Among the three isolates NASCB-5 had given maximum enzyme activity.The isolates NASCB-5 were identified as Bacillus subtilis strains by morphological, physiological, biochemical and 16S rRNA gene analysis. The isolated strain produced cellulase enzymes complex, which suggested synergic cellulolytic systems in Bacillus subtilis. Cellulase was produced in cellulase enzyme production media containig waste paper as Carbon source and the culture conditions like temperature, pH, and Incubation time and medium components nitrogen sources were optimized. Optimal concentration of inoculum for enzyme production is 2 % and incubation time is 60 hrs. Optimum temperature and pH of the medium for the cellulase production by Bacillus subtilis was 40 0C and pH 7.