Biopolymers and their composites have been massively investigated in recent years for multiple applications especially in environmental medical and pharmaceutical fields. A thermoplastic that is both biodegradable and environmental friendly, as well as biocompatible is PHB. PHB is an intracellular granule, which is a carbon and energy reservoir for the bacteria under starvation or stress conditions. In the present work, we focused on identification of potential PHB (Polyhydroxybutyrate) producing bacterial strains from sewage soil of coastal region of Andhra Pradesh. Five bacterial isolates were identified through Sudan Black staining, out of which RR02 was observed to be potential for PHB production. Further, PHB extraction was performed by solvent extraction method. The extracted sample was characterized by FTIR, melting temperature Tm, was determined by DSC and then, compared with standard PHB for confirmation of quality. Biochemical characterization was also performed for preliminary identification of the bacterial isolate. Based on the study it was found to be Bacillus sp.