Various raw materials including plant biomass, bacteria, algae and the Tunicates (marine animals) have been used to produce cellulose. However, agricultural waste has rarely been utilized for this purpose. In this work, Sugarcane bagasse was used as raw material to produce cellulose. Cellulose was extracted from sugarcane bagasse through the elimination of lignin and hemicellulose. Cellulose was then converted to carboxymethyl cellulose (CMC b ) by using sodium monochloroacet (SMCA) and various sodium hydroxide (NaOH) concentrations. Fourier Transform Infrared Spectroscopy (FTIR) was applied to verify the effect of NaOH concentration on this property. The highest viscosity and degree of substitution (DS=0.78) were observed in 30 gr/100 ml NaOH of carboxymethylation. Maximum tensile strength of the films produced at these conditions was 37.34 Mpa. The addition of a various amount of glycerol (1 ml/ 100 ml, 2 ml/ 100 ml, 3 ml/ 100 ml) dramatically decreased the tensile strength. The highest level of water vapor permeability was also observed at the same NaOH concentration. Cellulose can be correctly extracted from sugarcane bagasse and converted to carboxymethyl cellulose. Based on the cellulose of the bagasse characteristic, proper amount of NaOH was found to get a high DS. CMC b has considerable features for application on biodegradable coating materials.