Bagasse is abundantly available in many countries as a by-product jkom sugar mills and is being mostly used as fuel or disposed of by incineration. An attempt has been made to convert this byproduct into useful eco-friendly cement-bonded composites, which can be used for various internal and external applications in buildings. The investigations include optimization of parameters such as bagasse content, casting pressure and demoulding time for the production of bagassecement composites and the method of their production. The physico-mechanical properties of the composites produced by using the parameters jinalised as above were determined. The developed composites were also subjected to accelerated laboratory tests to study the effect of moisture and alternate wetting and drying cycles on their properties. The results obtained from these studies show that the developed composites meet most of the requirements of various standards on cement-bonded particle boards and have high levels of performance even in moist conditions. Therefore, in countries where bagasse is substantially available, it can be used for the production sf cement-bonded building materials.