Ethanol from renewable resources has been of interest in recent decades as an alternative fuel or oxygenated additive to current fossil fuels. Bioethanol can be produced by fermentation from a variety of raw materials which contain sugars, starch and lignocellulosic substances. One of the most important parts of the process of producing ethanol by fermentation is using microorganisms.A great number of yeasts and fungi are used in the fermentation industry. Zygomycetes are saprophytic filamentous fungi, which are able to produce several metabolites including ethanol and glycerol.Among the filamentous fungi belonging to the zygomycetes normal" M. indicus . This corresponds to around 5.2-fold higher ethanol yield compared to that from the untreated straw. Moreover, the yield of glycerol production by adding the fungal extract was reduced in all fermentation process (glucose, wheat grains, and wheat straw) as compared to those obtained in presence of yeast extract. Based on the aforementioned results, it can be concluded that fungal extract as a potential nutrient source can be used in culture media to promote ethanol yield and also repress the formation of glycerol as the major byproduct. Keywords: Bioethanol, Mucor indicus , Fungal extract, Chitosan, Wheat, Nutrient .