Xylanase enzyme is of great importance commercially because of its high stability at elevated temperatures and in alkaline conditions. The present study was aimed to isolate and screen xylanase producing bacteria and to optimize cultural conditions for maximum production of enzyme from locally isolated bacteria and to optimize the assay conditions under which enzyme possessed maximum activity. Two bacterial isolates XPB-GS02 and XPB-CW01 with maximum activity ratio showed 18.3 and 12.2 U/ml xylanase activity, respectively. Maximum xylanase was produced in medium M1 containing xylan after 48 hours of incubation. Maximum amount of enzyme was produced by XPB-GS02 at 45ᵒC, pH 9 using 1% xylan concentration, while XPB-CW01 produced maximum amount of xylanase at 50ᵒC, pH 7 with 1.5% xylan concentration. Maximum xylanase activity was achieved at temperature 50ᵒC, pH9 with 2% xylan concentration. Xylanase produced by XPB-GS02 was active from 35-80oC, while XPB-CW01 was active from 30 _70oC with optimum temperature 50°C.