The key process parameters for the filtration loss of water-based drilling fluid (WBDF), using Arachishypogaea shells cellulose (AHSC) were optimized using the two-level-two factor full factorial design of Response Surface Methodology (RSM). This research reveals the key outcomes of investigations, carried out on the formulation of a sustainable drilling fluid system, where AHSC is used as a fluid loss additive having no toxicity and high biodegradability. The characterization and pre-treatment of the AHSC used were carried out. Meanwhile, the result of the proximate analysis revealed that the AHSC had 70.40% cellulose, which is a good additive for drilling mud formulation that displays related functions as some of the foreign fluid loss polymers like polyanionic cellulose used in producing drilling muds. It was established that, additive concentration and filtration time had significant effects on WBDF formulation and performance while the optimum results were obtained as: 6g, 15 minutes and 11.58ml for additive concentration, filtration time and filtration loss, respectively. This investigation showed the suitability of AHSC as fluid loss additive that is cost-effective and eco-friendly alternative in this challenging phase of the hydrocarbon exploration industry.