The protease producing halophilic bacteria were isolated from the banks of different regions of the Indian Ocean near Chennai. In the preliminary screening twelve halophilic bacterial isolates exhibited protease production. Protease enzyme was produced and its activity was assessed through Kunitz assay method. Among them one isolate was taken and identified by Bergey's manual of systemic bacteriology. The characteristics of the protease producing halophilic Bacillus species HP-2 possess wide range of application in detergent, leather, silver recovery and in food industry.