Present study mainly focused on investigating the feasibility of waste loquat kernels as substrate in submerged culture of Sclerotium rolfsii MT-6 for scleroglucan production. Loquat kernel contained high protein (22.5%) and total carbohydrate (71.2%) contents. Dried and powdered kernels were subjected to acid hydrolysis with 2 N HCl. The obtained hydrolysate was used for the preparation of loquat kernel extract (LKE) and detoxified loquat kernel extract (DLKE). S. rolfsii MT-6 was isolated from fermented squash (Cucurbita pepo). Optimal conditions for scleroglucan production were initial pH 5.0, shaking speed 150 rpm, $28^{circ}C$, and cultivation time of 72 hr. Production media prepared with DLKE or LKE gave maximum biomass concentrations of 17.06 and 16.21 g/L, and maximum scleroglucan concentrations of 12.08 and 10.53 g/L, respectively. DLKE was also favorable substrate for mycelial growth in a uniform pellet form. This is a first report on the application of waste loquat kernels as scleroglucan production substrate and on the use of a local S. rolfsii isolate for this purpose.