The study was initiated to develop callus using vermicompost extracts and coelomic fluid of earthworm Eudrilus eugeniae on in situ development of medicinal plant Catharanthus roseus. Vermicompost extract without any hormone supplements supported 100% callus induction. Vermicompost extract with 0.5mg/L BAP, 1mg/L NAA and 1mg/L IBA have supported 70% callus induction. Vermicompost extract with 1mg/L 2,4-D and 1mg/L KIN have shown 60% callus induction. Suspension culture was successfully developed using vermicompost extract and coelomic fluid in the 3:1 ratio. Phytochemical analysis has shown Total Phenol Content to be less in in vitro callus when compared to in vivo (86.88±0.12 mg/g) plants and flavonoids were higher (1.74±0.15 mg/gram) in callus. TLC and HPLC analysis have shown the presence of alkaloids in the plant calli and suspension cultures of C. roseus. Alkaloids recovered from the suspension media have indicated that certain important alkaloids can be obtained from the media itself without sacrificing the cells and the plants for pharmaceutical purposes. Vermicompost extract alone has given the best result. By standardizing the technique, it is possible to develop the plants through micropropagation in an economical way.