Biochemical conversion of agro-industrial wastes is an effective way of value addition. During the extraction of oil from soybean seed, due to supply of excessive heat or being retained for more time in desolventizer, the meal quality is reduced due to overheating and hence rejected for animal feed. The solid state fermentation using Aspergillus oryzae (NCIM No.649) to recover protease shows excellent potential of the overheated soybean meal (waste) as source. During the study the effect of varying particle size, pH, moisture content, incubation time and Protease activity has been measured.