Non milled sugarcane bagasse procured from sugar mill, Meham (Rohtak) contained 31.7% cellulose, 23.7% hemicellulose and 22.8% lignin. After grinding there was negligible change in composition. Treatment with 5% NaOH for 1 hour was found to be best treatment in terms of change in composition of substrate and time of pretreatment. There was 75.9% decrease in lignin content whereas cellulose content was increased to 42.0%. The pretreated biomass was further used for saccharification to obtain maximum reducing sugars by fungal inoculation. Simultaneous saccharification and fermentation of pretreated substrates was carried out in buffer nutrient medium using enzyme precipitate of Trichoderma reesei and Saccharomyces cerevisiae. Maximum ethanol (3.1%) was observed in 5% alkali pretreated milled sugarcane bagasse at 10% substrate loading.