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The prospects of biodegradable materials such as tofu, walnut, pine, corn etc. as the main components for cat litter production have been studied comprehensively by various researchers, which provide concrete database regarding its clump ability, clump strength, bulk densities, hydration capacities etc. by using meticulous technique and advanced equipment. Majority of these studies mainly focused on the biodegradability/sustainability of the main composition of the cat litter which composed of >=50 wt% of the overall cat litter composition. However, less studies emphasized on the biodegradability/sustainability of binder element which usually compose of <=40 wt% of the overall cat litter composition. In this study, an eco-friendly and cost-effective cat litter has been successfully developed using sugarcane dregs as main material and used palm oil as binding agent, with the ratio of 49.7:40.0 by weight respectively. The remaining proportion of the cat litter includes 10% of xanthan gum as clumping agent and 0.3% of sodium propionate. Xanthan gum is a non-toxic material and has a good bio adhesive ability which is commonly used in pharmaceutical. Meanwhile, the trace amount of sodium propionate was added to prevent growth of mold and some bacteria which is usually used as food preservative. The cat litter produced exhibit sufficient hydration capacity and clumping ability which makes it suitable to be commercialized as biodegradable and low-cost cat litter that cater for cat owners with environmental and budget concern.