Abstract: Biosurfactant-producing bacteria, isolate KVD1, was isolated from Krishna river delta mangrove sediments. The taxonomic identification of KVD1 strain was done by sequencing of 16S rRNA gene showed that it formed a coherent cluster with the clad that comprised of Pseudomonas aeruginosa to be its closest phylogenetic neighbour. Strikingly, for the first time Pseudomonas aeruginosa strain KVD1 isolated from mangroves was shown to produce highest biosurfactant (4.08 g L-1) in optimised MSM containing 1.5% diesel as sole carbon source, 1% (NH4)2SO4 as nitrogen source and 1 g L-1 NaCl, at pH (7±2), 30°C, 150 rpm. The biosurfactant was obtained by cold acetone extraction method showed emulsification activity of E24% = 61±2% with n-hexadecane. The stability of the biosurfactant at different salinity, pH and temperature was also investigated. This biosurfactant also exhibited significant efficiency in oil recovery sand experiment. The present study emphasizes that biosurfactant produced by strain KVD1 is critical to open new biotechnological applications in enhanced oil removal from spillages and also as cleaning and emulsifying agents in the industry.