Tannase or tannin-acyl-hydrolase (E.C.3.1.1.2.0) catalyzes the hydrolysis of ester and depside bonds in hydrolysable tannins, as tannic acid, releasing glucose and gallic acid. The present work explored the production, optimization of various parameters like pH, temperature, incubation period, salt-concentration, carbon sources & nitrogen sources and growth profile of tannase by Bacillus cereus. The tannase from the bacterium showed optimal activity at 48 h and 35°C with 1M salt concentration and initial pH 4.5. The peak enzyme activity was observed while supplementing sucrose at 1% conc. and maltose at 1 & 2% conc. as carbon sources, ammonium chloride at 3% conc. as nitrogen source. The maximum tannase activity 0.1586 U/ml was recorded in the mid-exponential phase of Bacillus cereus. Bacillus cereus thus has high potential and may be useful for industrial production of tannase.