This study was conducted to screen forstrains with proteolytic activity and to examine the effects of pH, temperature and incubation time on the activity of isolated crude enzymes. Bacterial isolates was isolated from the sewage site present in different river banks of Kathmandu valley. Isolated samples were screened for production of protease. One of the isolates was found positive and designated as SAG-P2. This isolates was taken for further studies. The optimum pH for enzyme activity was found to be at pH 6.6 and the optimum temperature for the activity was found to be at 50 ºC.