The unavailability of process‐suitable cellulases and expensive cost prompted research on the economic production of proficient enzymes. Bacillus licheniformis K‐3, an isolate from degrading lignocellulosic biomass, can produce cellulose, possessing activity and stability over broad pH range (4.0–10) and at elevated temperature (40–90 °C). B. licheniformis K‐3 can be used to successfully utilize agricultural residues (such as wheat bran, corn waste, wheat straw, almond hulls, soybean meal, and mustard cake) as substrates for growth and cellulase production. The most effective fermentation variables (wheat bran, incubation time, and medium pH) have been earmarked on the basis of Plackett–Burman designed experiments and they were optimized by using response surface methodology to achieve a 7‐fold enhancement in the cellulase yield. Partially purified cellulase showed efficient saccharification potential for single‐phase sulphuric‐acid‐pretreated rice straw.