Fuel ethanol is one of the most promising new renewable energy sources. It is has become a focus research worldwide on ethanol production from lignocellulose instead of starch and sugars. Sugarcane bagasse,a main waste material from sugar industry,is an important renewable biological resource as its wide variety of sources and high content of cellulose. The composition and characteristics of sugarcane bagasse as well as the present situation of fuel ethanol production from sugarcane bagasse were described. Meanwhile,the pretreatment,enzymatic saccharification and ethanol fermentation of sugarcane bagasse were elaborated. It is promising and significance to produce fuel ethanol from sugarcane bagasse.