Lignocellulose, the major component of biomass, makes up about half of the matter produced by photosynthesis. It consists of three types of polymers- cellulose, hemicellulose and lignin that are strongly intermeshed; therefore their recycling is indispensable for the carbon cycle. Each polymer degraded by a variety of microorganisms which produce a number of enzymes that work on the waste material. For the present research work agro-industrial waste such as bagasse were selected this was good source of lingo-cellulose material. Bagasse were inoculated with fungal strains such as Pleurotus sajor-caju, Trichoderma harzianum and Aspergillus niger and Chaetomium globosum and allowed composting process for 40 days with above different combinations of fungal strains. Temperature and moisture content 60-80% maintained throughout the experimental work. Analysis of initial, control and compost samples showed degradation of cellulose, hemicellulose and lignin content. Cellulose decreased from 27.10% to 11.6%, hemicellulose 18.10% to 5.71% and lignin 9.70% to 3.46%. In the future, processes that use lingo-cellulytic enzymes or are based on microorganisms could lead to new, environment friendly technologies. This study suggests that agro-industrial wastes could be converted into some value added products such as compost.