Cellulase-free xylanase has potential for its application in the selective removal of hemicellulose from kraft pulp to give good strength to paper. In this study, a gene (xyn) encoding cellulase activity-free xylanase enzyme (Xyn) was isolated from Paenibacillus polymyxa PPL-3. The xyn gene encoded a protein of 221 amino acids, and the purified Xyn was about 22.5 kDa measured by sodium dodecyl sulfate-polyacrylamide gel electrophoresis. Moreover, the cellulase activity-free xylanase enzyme (Xyn) was displayed on the cell surface of Saccharomyces cerevisiae EBY100 using Aga2p as an anchor protein. Cell surface display of xylanase enzyme (Xyn) on S. cerevisiae EBY100 was confirmed by immunofluorescence microscopy. Optimum cell surface display of xylanase enzyme (Xyn) was observed at pH 7 and 40 °C. Therefore, cell surface-displayed xylanase enzyme (Xyn) can be used in the paper industry.