High thermostability of the enzymes is one of the distinguishing characteristics that increase their industrial utility. In the current research work, rigidifying the flexible amino acid residues of a lysophospholipase (Pa‐LPL) from Pyrococcus abyssi was used as a protein engineering approach to improve its thermostability. A truncated variant of Pa‐LPL (t‐LPL∆12) was constructed by trimming its 12 amino acid residues (50–61) through overlap extension PCR. The truncated enzyme worked optimally at 65°C and pH 6.5 with remarkable thermostability at 65°C–85°C. In comparison to wild‐type Pa‐LPL, 5.8 and 1.2‐fold increase in half‐life (t1/2) of t‐LPL∆12 was observed at 65 (optimum temperature) and 95°C, respectively. The activity of t‐LPL∆12 was stimulated by 1 mM Cu2+ followed by Ca2+, Ni2+, Co2+, and Mg2+. Both substrate docking and experimental results indicated that the truncated enzyme could hydrolyze a variety of p‐nitrophenyl esters. Km, Vmax, and Kcat for enzymatic hydrolysis of p‐nitrophenyl butyrate were calculated to be 1 ± 0.087 mM, 1456 ± 36.474 U/mg, and 1.397 × 1011 min−1, respectively. In short, broad substrate specificity and thermostability of t‐LPL∆12 are some of the distinctive features that make it an ideal candidate for degumming of vegetable oils.