This paper analyses the production of ethanol from waste banana peel using Saccharomyces cerevisiae at optimum growth conditions. The objective is to identify and isolate the elite strains of yeast suitable for fermentation of banana peel, optimize the fermentation condition for maximum production of the product, standardize the concentration of acid for the maximum recovery of alcohol and assess the ethanol production potential from banana peel and study the parameters associated with it. High ethanol concentration was achieved with acid saccharification than enzymatic saccharification and it is concluded that ethanol production from banana peel waste is the best renewable natural resources for developing country like India.