A thermo tolerant yeast Cryptococcus albidus was characterized for optimal production of liapse . The organism shown maximum production on 5th day of incubation. The optimum temperature for both production and activity was 500C and optimal pH was 6.5. Few metal ions like Ba2+, Ca2+, Mg2+ and Zn2+ enhanced the activity whereas Fe3+, Mn2+ and Zn2+ declined the enzyme action. The enzyme was characterized by some inhibitors and solvents; amongst inhibitors, β – mercapto ethanol and SDS had shown maximum inhibition where as amongst the solvents phenol and choloroform strongly repressed the activity. Different solid and liquid raw materials viz; oil cake, vegetable oils and ghee extraction waste were also studied for enzyme production.