A large amount of coffee waste water is generated from coffee processing plants. Thesernresidues possess serious environmental problems following the direct discharge in to thernnearby water bodies and cause serious environmental and health problems. This studyrnaimed to: (i) review wet coffee processing waste management practice in Ethiopia, (ii)rncharacterize wet coffee processing waste and determine its total reducing sugar potential,rn(iii) quantify wet coffee processing waste and estimate its bio-ethanol potential and alsornevaluate the feasibility of bio-ethanol production and (iv) optimize the parameters andrnproduce bio ethanol from wet coffee processing waste. The review of wet coffeernprocessing waste management practice in Ethiopia revealed that there are about 1026rnoperational wet coffee processing industries and many more industries are underrnconstruction. In 2012, the estimated amount of wet coffee processing waste fromrnoperational industries in Ethiopia was about 291,600 tones / year. The study alsornexamined the characteristics of wet coffee waste. The volatile solid of the Pulp juice andrnMucilage were determined and showed that the wastes have high organic component, i.e.rnPulp juice, 66.5% and Mucilage, 90.2%. The study shows the waste (pulp juice andrnmucilage) is acidic with pH 4.75 and 3.67, respectively. Pulp juice and Mucilage hadrnvery high BOD and COD Concentration, i.e. BOD = 25,600 mg/L and COD = 45,000rnmg/L for pulp juice and BOD = 19,810 mg/L, COD = 33,600 mg/L for Mucilage. ThernCOD: BOD ratio is less than 2:1, which shows the wastes are bio-degradable. This studyrnshows that the coffee wastes are potential environmental problems and cause waterrnpollution due to high organic component and acidic nature. The waste was hydrolyzed byrndilute H2SO4 (1, 2, 3 and 4%) and distilled water. Total sugar content of the sample wasrndetermined titrimetrically and using refractometer.rnivrnMaximum total sugar content (90%) was obtained from hydrolysis by 3% H2SO4. Thernresults obtained at hydrolysis of 4, 2, 1% H2SO4 and distilled water are 72.86, 76.50,rn63.75 and 56.66%, respectively. Ethanol production was monitored by gasrnchromatography. The maximum ethanol yield of 78% was obtained from coffee wasternhydrolyzed by 0.4 M H2SO4 for 1 hour hydrolysis, temperature of 100 0C andrnfermentation for 24 hours and initial pH of 4.5. Based on the data, it was concluded thatrncoffee may be considered as one of the most valuable primary products in world trade,rncrucial to the economies and politics of many developing countries. As a consequence ofrnbig market, the reuse of the main coffee industry wastes is of significant importance fromrnenvironmental and economical view points. In conclusion, this study has proposed tornutilize the wet coffee processing waste to produce bio-ethanol which provides thernalternative energy source from waste biomass and solves the environmental wasterndisposal as well as human health problem.