Microorganisms, which secret a complex of mycolytic enzymes are considered to be possible biological control agents of plant diseases.In this present study, an industrial enzyme chitinase produced by Bacillus species was optimized, purified and its antifungal activity was investigated against plant pathogens. The bacteria Bacillus species was isolated from soil sample and it was identified by staining techniques, plating on selective media and biochemical characteristics. The Bacillus species showed highest chitinolytic activity in Colloidal chitin agars that degrade chitin in 0.6 mm zone of clearance. The production of chitinase by Bacillus species was optimized under different media, substrates, substrate concentrations, pH, temperature and incubation period. The maximum chitinase production was observed in Luria Bertaini Broth amended with 0.3% colloidal chitin at pH 7.0 and temperature 37˚C after four days of incubation. The enzyme was partially purified by Dialysis method. The Chitinase has antifungal activity against plant pathogens viz, Aspergillus niger, Aspergillus flavus and Penicillium chrysogenum.