The bacterium, Bacillus sp. holds good promise as a biotreatment tool due to its ability to produce the peroxidase enzyme which has the potential to degrade various hazardous compounds. In this article, we describe the selection of medium components like pH, temperature, carbon sources, nitrogen sources and amino acids for the optimal production of peroxidase by Bacillus sp. with a series of experiments which is important for peroxidase production. Peroxidase enzyme find useful in a variety of biotechnological fields such as pulp and paper, laundry and textile industries, for the decomposition of pollutants. It can be further used in many newer areas where they can serve as potential biocatalysts.