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Cold active enzymes are valuable biocatalysts, due to their capacity to withstand extreme conditions. Microbial lipases are widely used in biotechnological applications as well as in industries due to their broad substrate specificity, and higher stability with less production costs compared to other sources. In the present study, bacterial strains were isolated from the surface and sub-surface sediment samples of the Arctic fjord and were screened for lipase enzyme production. From the 73 isolates that were screened, 8 isolates are considered to be good lipase producers. Among the 8 isolates, Bacillus cereus I13 produced lipase with the activity of 11.42 U/ml on the 4th day of incubation at 20 °C along with the highest zone of clearance of 27 mm in the agar well diffusion plate method. The optimum condition for higher lipase production was at pH 7.0, a temperature of 20 °C, an incubation period of 96 hours with glucose as a carbon source, yeast as the nitrogen source, and olive oil as substrate. Bacillus cereus I13 from Arctic fjord sediments can be used as a potential candidate for the industrial production of cold-active lipase. The optimization studies described in the study proved that lipase production can be effectively increased using these potent isolates.