This study was carried out to obtained the local fungi isolates and evaluate the activity of lytic the cellulose by using cellulose and carboxymethyl cellulose (CMC) as sources of carbon in growth media. isolate and diagnosed the 48 fungi from different agricultural wastes depending on: colony diameter, biomass, density of spores, optimum condition determination of isolated growth, the cellulytic enzymes production. The isolate were diagnosed Alternaria spp. as the best isolate depending on its ability for producing the hydrolytic enzymes through lysis the cellulose and consumption the glucose and dextrose from lysis method and bioethanol production that didn’t recorded this Alternaria spp. isolate in the world and Iraq scientific researchers for its ability to bioethanol alcohol production in 6.668 ppm. concentration from glucolysis and fermentation in one operate (step), increased activity of isolate Alternaria spp. were tested in cellulytic and bioethanol alcohol production which reached 37.167 ppm. by using mutation methods when its exposed with ultra violate ray while the bioethanol alcohol production reached 46.955 ppm. after expose the Alternaria spp. isolate with acridin orange stain in production media with rice straws as carbon source, that refer into the Alternaria spp. isolate have ability to cellulytic and bioalcohol production in one operate without using yeasts in fermentation and bioalcohol production in addition increasing the bioethanol production in high concentration after using mutation methods.