Color-Octet Contribution and Direct CP Violation in Bto psi (psi') X

We study $c \bar c$ color-octet contribution to $B\to \psi (\psi') X$. When this contribution is included, the theoretical predictions for the branching ratios become in much better agreement with the experiment. This mechanism also enhances the partial rate asymmetries by about a factor of five. The inclusive $\psi(\psi')$ resulting from $b\to d+{}$gluon can have asymmetry around a few percent whereas those from $b\to s+{}$gluon has it around $4\times 10^{-4}$. The asymmetry in the former modes should be observable, to a significance of $3\sigma$, with about $(1-10)\times 10^8B$ mesons.