The present work focuses on the utilization of potato peel waste for the production of bioethanol. In the present study, extensive screening was undertaken to isolate amylolytic and cellulolytic microbes using starchy biomass. After confirming the chemical composition of potato peel waste (PPW), several trials were performed to enhance the amylase and cellulase production from Bacillus subtilis to hydrolyze the PPW in submerged fermentation. Optimization of physical parameters was performed using both commercial and indigenous media from enzymatically hydrolyzed PPW. Different routes of various combinations were designed to enhance bioethanol production. The maximum ethanol titer of 0.50% and 0.41% was recorded in Route B and A, i.e., separate saccharification and ethanol fermentation and consolidated fermentation. Simultaneous saccharification and fermentation (SSF) also measured a good ethanol yield of 0.46%. The fermented residual cake was checked for nutritional components and showed a high content of protein and amino acids because of the addition of unicellular yeasts. This cake can be utilized as an animal feed supplement.