The potential environmental benefits that can be obtained from replacing petroleum fuels with biofuels derived from renewable biomass sources are the main driving forces for promoting the production and use of biofuels. Due to depletion of fossil fuels, ethanol, which can be obtained via the bioconversion of renewable feedstock, is widely regarded as an efficient alternative for gasoline as transportation fuel. Biomass energy can play an important role in reducing greenhouse gas emissions. Rice bran is a by-product of milling process of rice, and due to its carbohydrate contents, it may serve as good source for bioethanol production. The present study deals with bioethanol production from rice bran and screening of bioethanol-producing bacteria from rice bran. In the screening process, three fermentative bacteria were obtained; they were studied on the basis of morphology, biochemical characteristics and maximum bioethanol production. The maximum bioethanol-producing bacteria was identified by sequencing method. The bacteria thus identified as Bacillus cereus strain McR-3 is a novel bacteria reported in bioethanol production from rice bran substrate. Different parameters like temperature and pH also affects the production of bioethanol. It was observed that optimum temperature and pH for maximum bioethanol production was 37 °C and 5, respectively.