Abstract: Proteolysis reactions are taking place due to the degradation of proteins into amino acids or peptides by a variety of microorganisms. An investigation was taken up to find out the activity of proteolysis by Bacillus species under controlled condition. Attempts were made to isolate Bacillus species from three samples such as water, egg granules and flavour juice. The microbial load was found to be more in water samples followed by egg granules and it was least in flavour juice samples. A total of seven isolates were obtained from these samples and were designated as WB-1, WB-2, EB-1, EB-2, JMB, JLB and JGB. The isolated bacteria were characterized based on their morphological, culture characteristics and biochemical tests. Further, the results were compared with the Bergey`s manual of Determinative Bacteriology, which showed Bacillus cereus. The activity of proteolysis was studied by using two different media such as albumin agar and skim milk agar. The results revealed that skim milk agar medium was found to be higher in term of the formation of halo zone around colonies than albumin agar medium. The formation of halo zone around colonies in the media indicated that proteins were hydrolyzed by the bacteria. Among the different strains tested for the activity, WB-2 was found to the best followed by WB-1 and least by JGB in both media.