Bacillus circulans was isolated for xylanase production from paper effluent collected from paper mill. Extracellular Xylanase production was observed in the culture medium with pH 7 at 30 Ã?Å?Ã?Å C. Culture medium amended with 1% birch wood xylanwas found to be suitable source to enhance Xylanase yield in shaking condition at 7 pH at room temperature in submerged fermentation. Partial purification of Xylanase was done from crude enzyme extract by three steps (ammonium sulphate precipitation, TCA-Acetone precipitation and Ion exchange chromatography).The molecular mass of Xylanase was ~ 20 KDa and was observed by SDS-PAGE Zymography technique. Optimum Enzyme activity was recorded at 30°C in standard conditions.