Vegetable and fruit wastes are generated in large quantities at central vegetable market. Redirection of this waste from landfills to biological treatment can reduce environmental issues. Cooked oil from restaurants discharged to common sewer interferes with common effluent treatment plants that treat municipal wastewater. The current study focused on co-digestion of vegetable and fruit waste along with oil residue. Experiments carried out in a laboratory scale anaerobic batch reactors showed that addition oil residue to vegetable and fruit waste has shown an increase in methane yield of 30%. Oil as mono substrates in anaerobic digestion shown a delayed degradation at start up and could not reach a stable state.