An attempt has been made to study the physical and chemical composition of solid waste, methods of recyclingof solid waste and use of vermicompost prepared out of solid waste in agriculture. Study was based on both primary andsecondary data. The secondary data on various aspects of solid waste was collected from selected Municipal Corporationsfrom 2001-02 to 2016-17. The primary data was obtained from farmers using recycled solid waste from 30 sample farmersunder each municipal corporation. Out of 30 farmers, 15 farmers who were using vermicompost prepared out of solid wastewere selected and the remaining 15 were non-users of vermicompost. The results indicated that, nearly 62 to 65 per cent ofsolid waste generated was biodegradable which can be easily converted in to vermicompost. Outof the total solid wastegenerated in Hubballi-Dharwad (400t/day), about 390 tonnes of waste was dumped in two open dumping yards while, only2.5 per cent was processed through vermicomposting whereas in Bengaluru, about 3,200 tonnes of solid waste per day waslandfilled in three sites and only 1,000 tonnes (22.22 %) and 300 tonnes (6.67 %) was processed intovermicompost andbiomethanation process, respectively. The recycling of bio-degradable solid waste into vermicompost has high scope andwas found to be financially feasible as implied by high IRR (26.12 % in Hubballi-Dharwad to 32.34 % in Bengaluru) and BCratio of 1.50 and 2.04, respectively with aninvestment recovery period of just two years. The use of vermicompostprepared out of solid waste in growing crops like soybean (2.28), hybrid maize (1.97 in Hubballi-Dharwad and 1.79 inBengaluru) and finger millet (1.91) was found to be economically profitable as indicated by BC ratio. Therefore, effortsshould be made to convert biodegradable waste in to vermicompost in a large scale in order to reduce the burden on thelandfills and also the use of chemical fertilizers.