Composting is one of the most economical and environmentally safe methods of recycling organic waste. Soil microorganisms play a significant role in decomposition and the availability of plant nutrients. This study was designed to prepare a suitable microbial inoculum and its evaluation on composting heap to decrease the time of waste degradation. The bacteria were isolated and molecular characterized from the soil near composting area by using 16S ribotyping technique. The identified strains of bacillus cereus used as an inoculum gives better results to expedite the degradation of organic waste. The prepared bacterial inoculum with molasses was also compared with commercial inoculum by optimizing physical and chemical parameters (temperature, oxygen, C: N, pH, and moisture content) of composting heap. Monthly reading of these parameters was taken from experimental and control treatments. The highest decomposition rate of organic waste was recorded in treatment A (experimental heap) where molasses and bacterial inoculum were added and less decomposition was observed in treatment D (experimental heap) where no inoculum and molasses were added. It was concluded from the studies that the prepared bacterial inoculum with two strains of Bacillus was effective and prepared mature compost in 2.5 months by increasing decomposition efficiency of organic waste. Furthermore, the prepared compost was also sustainable in its physical and chemical characteristic.