The purpose of the current research was to screen, characterize and isolate protease producing bacteria from raw milk sample. Initially, the raw milk sample was spread on nutrient agar, at 35oC for 20 hrs. Four bacterial colonies of different morphology for further study. Among these, M-4 colony were selected and isolate produced highest protease activity and was identified as Proteus mirabilis by morphological and biochemical tests. Moreover, various physiological characters were also studied such as pH, temperature, carbon source and nitrogen sources. The bacteria showed maximum activity at pH 7, temperature requirement is 35oC, lactose as a carbon source and potassium nitrate as a nitrogen source respectively. At the end, enzyme activity assay was done by using well diffusion method. Microbial proteases which are environmentally friendly are interestingly used for their commercial importance.