Due to the phenomenal growth in the quantum and diversity of the waste materials generated by the human activity, potentially harmful effects on the environment and public health are resulted. The present method of the waste disposal causes the pollution of soil as well as the surface and ground water. Hence vermicomposting is carried out as a safe method for solid waste disposal. An experiment is conducted to prepare vermicompost using partially decomposed fruit waste and yard waste by employing indigenous earthworm species. The earthworms used are Eudrillus Eugenie. This process is carried out with the use of diluted raw dairy and distillery effluents to provide the necessary moisture for the wastes. The process is done under the controlled conditions of pH, moisture content and temperature. In this process partially decomposed fruit and yard waste are broken down and fragmented rapidly by earthworms, resulting in a stable non-toxic material with good structure which has a potentially high economic value as soil conditioner for plant growth. Within 40 days, the castings obtained on the top surface are collected, sieved, dried, tested and used as manure. The result reveals in the increased nutrient content, increased worm population and decreased processing days of the waste in the order of: Dairy, Distillery and water. Hence this study shows that the vermicomposting is an efficient process that stabilizes the waste, at the same time managing to solve the environmental problems arising from their disposal.