Composition of organic waste in Surabaya was 54.31% of the total generated waste. One of the biodegradable organic waste is banana peel and sawdust. There are a lack of processing banana peels and sawdust into useful products. The variation of vermicompost materials in this research were vegetable waste (27%), banana peels (27%), and sawdust (46%). The physical characteristics of compost (temperature, moisture content, texture, color, particle size of compost, shrinkage of compost material and weight of L.lumberus worms) were analyzed. The results of this study shown that the physical characteristics of compost in reactors 1 (no adding worms), 2 (adding 100gr worms/kg organic waste), and 3 (adding 250 gr worms/kg organic waste) (temperature, texture and color) have met the standards (Indonesian National Standard number 7763:2018 and 19-7030-2004) but the moisture content did not meet the standards. R2 has a percentage of decreasing of worms about 16.4% of worms but the worms in R3 increased up to 8.3% of worm weight. The shrinkage of compost material in R1, R2, and R3 was 64.67%, 76.45%; and 71.01%, respectively.