Abstract: Actinomycetes (20 strains), isolated from the sediments of shrimp pond were examined for their lipase activity. Strain LE-11, which was tentatively identified as Streptomyces griseochromogenes, showed higher lipase activity and it was taken for further study. Effects of various physical and chemical factors such as pH, temperatures, sodium chloride concentrations, carbon and nitrogen compounds on the lipase activity of S. griseochromogenes were studied. It was found that at pH 7, temperature 55°C, 0.05% NaCl concentration, carbon compound mannitol and nitrogen compound L-phenelylanine, the enzyme activity was maximum. Protein content of the crude enzyme was 2.057 µl mLG-1. The crude protein and partially purified protein were run in the SDS-PAGE and a band was found on equal position; however molecular weight of the protein was not determined. The study indicated that S. griseochromogenes can effectively be used in large scale production of lipase enzyme for commercial purposes, after ascertaining the strain=s ability in large scale fermentations.