Yeasts are widely distributed in nature and can be isolated from nutrient rich substrates such as fruit and vegetable, fermented foods and beverages. Yeasts have been employed for millions of years in biotechnological applications in the production of bread, beer and wine. Saccharomyces cerevisiae is most important species when it comes to practical application in industries. Many developing countries including Nigeria spent billions of dollars annually on importation of active dry yeasts used in their baking and brewery industries. In order to reverse this trend, an attempt was made at improving the leavening capacity of S. cerevisiae isolated from locally made traditional alcoholic beverages by mutation induced by N-methyl-N-Nitro-N-Nitrosoguanidine (NTG). The yeast isolates were identified by their morphological properties and biochemical tests using standard methods. The viable counts of yeast isolated from the five alcoholic beverages employed in this study ranged between 1.4x107 and 2.4x108 CFU/mL. The yeast with the lowest percentage of occurrence (1.67%) are Geotricum candidum, Schizosaccharomyces japanicus, Sch. pombe, Candida intermedia etc. while S. cerevisiae had highest percentage of occurrence of 26.67%. S. cerevisiae PWII exhibited the highest dough rising ability among the parent strains, but S. cerevisiae M3 had the best dough rising power among the mutants. Physical examinations of the baked revealed that the bread samples produced with mutant strains compared favorably well with ones produced with commercial yeasts in terms of height, weight and volume. On the other hand bread samples produced using parent strains (PT 14 and PWII) had longer shelf life than bread from mutant and commercial strains. Sensory evaluation by taste panelists showed that the ranges of scores obtained are appearance (5.6-7.9), texture (6.3-8.1), taste (5.5-7.0), crumb (6.0-7.1) and overall acceptability (6.2-7.2). It could be concluded from this study that the leavening ability of S. cerevisiae could be enhanced by chemical mutagens and therefore could by employed in bread baking.