Abstract Polyhydroxybutyrates (PHBs) are polyesters that accumulate as inclusions in a wide variety of bacteria. Because of their inherent biodegradability, PHBs are considered as good candidates for production of biodegradable plastic. In the present study, we aimed to study the production of PHBs by bacterial strain isolated from divers’ sources using inexpensive substrates. Fifty bacterial strains isolated from different sources and ten were selected based on their relative accumulation of PHB granule inside the cell. Isolate AWW were found the best isolate for PHB production after extraction and quantification. The optimum PHB productions by the AWW were found at pH, temperature and incubation time of 7, 37 0C, and 48 hrs respectively. Glucose and peptone were best carbon and nitrogen sources for PHB production respectively. The strain was able to accumulate 55.6, 51.6, 37.4 and 25 % PHB when sugar cane bagasse, corn cone, teff straw (Eragrostis tef) and banana peel were used as carbon sources respectively for feasible production in terms of coast. Fourier transform-infrared results revealed that the identified functional units of PHB were C-H, CH2, C=O and C-O groups. The biodegradability of the PHB was tested by using soil bacteria. A sample biolistic film was prepared from the polymer by the chloroform method.