Development of an accurate and convenient method by which detection of cellulolytic organisms as well as the types of their cellulase i.e. extra- or intracellular, was attempted. A selective agar medium on which only cellulolytic organisms can form colonies was formulated. The media composed of $NaNO_3,\; 0.1\%;\; K_2HPO_4,\; 0.1\%,\; KCl,\; 0.05\%\; MgSO_4 \cdot 7H_2O,\; 0.05\%$, yeast extract, 0.005\%, CMC, 0.5\%, and agar, 0.1\%. Nine different microorganisms were tried to grow on the newly developed medium. They include E. coli HB101, Cellulomonas CSI-1, B. cereus, B. megaterium. B. amyloliquefaciens HI, B. stearothermophilus, and three strains of B. subtilis, RM125, BD170, and SB202. Out of these nine species and strains, seven could form colonies on the medium remaining two species, i.e. E. coli HB101 B. megaterium, not grown. The seven organism which could grow on this selective medium were thus qualified as celluloytic bacteria. When these seven organism were reexamined by Congo Red tests, however, only five of them showed halos around their colonies and the remaining two species, Cellulomonas CSI-1 and B. cereus, showed no halos. The Congo Red test was, therefore, not qualified for testing overall cellulolytic activity of microorganisms. It was concluded from the results that the overall cellulolytic activity of an organism can be detected by growing on the newly developed selective medium. Further tests with Congo Red dye may distinguish extracellular cellulase from intracellular one.