Natural flavour esters extracted from plant materials are often expensive for commercial use. The use of biotechnology appears to be attractive in various ester preparations under milder condition. Lipases have been employed for direct esterification and trans-esterification reaction in organic solvent to produce ester with short chain fatty acids. Lipases (triacylglycerol ester hydrolases) have been classified as enzymes that hydrolyze fats and oils with subsequent release of free fatty acids, diacylglycerols, monoacylglycerols and glycerol. Isoamylbutyrate (flavour) has been produced using butyric acid and iso-amyalcohol and lipase as catalyst at different conditions. From the experimental results it is observed that 20 – 88% flavour has been produced at different condition using lipase as biological catalyst.