32Cave sets the example of extreme ecological niche and habitat for diversified 33 microorganisms. Present study involved in the isolation of endoxylanase producing novel strain 34 Bacillus velezensis AG20 from the Krem Phyllut cave, Meghalaya, India. Culture dependent 35 studies, molecular phylogentics, RNA secondary folding pattern based on 16S rDNA 36 substantiated the identity of this novel strain. Bacillus velezensis AG20 revealed the superbug 37 quality having resistance against various class of broad-spectrum antibiotics. Bacillus velezensis 38 AG20 revealed biofilm formation over the cell surface in FESEM. Highest cell biomass and 39 xylanase production supported in TB medium, further purified partially to 5.3 fold with 21% 40 yield. Molecular weight of the purified xylanase found to be 45 kDa. Enzyme kinetics and 41 pattern of hydrolysis revealed the evidence for the selection of linear birchwood xylan with Vmax 42 = 21.0 ± 3.0 U/ml, Km = 1.25 mg/ml, Kcat = 1.75/s at optimum pH 7 and temperature 50 o C also 43 found significant statistically in Taguchi's orthogonal design. Conversely, ruled out any exo-44 acting activity against synthetic pNP-xylopyranoside substrate. Endo-xylanase isolated from 45 Bacillus velezensis AG20 was moderately thermostable over temperatures 50 and 60 o C. Time 46 dependent hydrolysis of agro-waste sugar cane bagasse depicted the production of xylo-XOS hold their prebiotic potential by promoting the growth of probiotics Bifidobacterium and 49 Lactobacillus as well as high stability (~90%) against systemic fluids. Mixed XOS (300 µg/ml) 50 displayed anti-proliferation activities by reducing the growth of HT-29 and Caco-2 cells 51 significantly 90% and 75%, respectively, after 48 h. 52 53 IMPORTANCE 54 Extremophiles dwelling inside the caves have laden with the extraordinary capabilities of 55 bioconversion by nature. The pristine ecological niche inside the cave, absence of proper light 56 and air, supports the livelihood of novel microorganisms. In India, Meghalaya is hoisting longest 57 caves in the East Khasi Hills, providing conducive environment for novel bacterial strains. With the prime objective of isolating novel bacterial strains that produce extracellular xylanase our studies have been carried out. Considering the present industrial demand for nutraceutical, 60 prebiotics, anti-proliferating agents and biofuels by the conversion of lignocellulosic biomass 61 (LCB), novel enzymes are required. Xylanases from bacterial origin play a significant role in 62 conversion of LCB into oligosaccharides. Therefore, exploration and characterization of 63 xylanase producing novel isolate from cave may pave the new arena for the production of 64 prebiotic and anti-inflammatory oligosaccharides from agro-waste. 65 66 67