A study was conducted to determine the effect of microbial fermented litter on reproductive performance of laying hens and reducing environmental pollution. 1,200 Luong Phuong layers from 22-45 weeks old were assigned in completely randomized design into two treatments. In the first treatment, husk litter was used as control to compare with the second treatment using microbial fermented litter. The experiment was repeated three times. Fermented litter Quality including temperature, moisture, number of total aerobic bacteria, and barn microclimate, as well as production parameters were evaluated. The results showed that the temperature was increased while moisture was reduced in chiken house when microbial fermented litter was used. The concentration of CO2 and NH3 reduced signifcantly in treatment using microbial fermented litter compared with control (P0.05). During the experimental period, the average egg production (hen-day percent) and FCR (kg feed/10 eggs) of the hens were not significantlty different among treatments. However, using microbial fermented litter clearly reduced disease incidence and mortality rate in treatments (P0.05). Based on this study it could be concluded that microbial fermented litter could be utilized for laying hens to reduce environmental pollution.