Endophytic bacteria reside within plant hosts without causing disease symptoms. Endophytic bacteria, named as KAU-EC1 was isolated from shoot cultures derived from field plants as well as in vitro seedlings of cashew (Anacardium occidentale L.). Isolation of endophyitic bacteria on nutrient agar media yielded large mucoid, opaque, circular convex colonies on nutrient agar medium. Variability of this bacterium was studied by cultural and morphological tests. PCR was performed for the amplification of 16S rDNA gene. 16S rRNA molecules contain both highly conserved regions and variable regions. The highly conserved regions provide priming site suitable for polymerase chain reaction and sequencing applications. 16S rDNA gene was amplified using two universal bacterial primers: 16S43-63 and 16S1404-1387. The PCR product when checked on agarose gel indicated the presence of band 1.3 Kbp. 16S rDNA gene from KAU-EC1 was cloned in pGEMT vector and sequenced and analyzed after vector and adapter editing. In silico analysis using bioinformatics tools revealed that sequence of KAU-EC1 showed 99 per cent homology with Klebsiella pneumoniae strain SA-D6-7 16S ribosomal RNA gene. This is the first study reporting endophytic bacteria in tissue culture cashew plants. The possible role for this bacterium in the biology of cashew plant remains unknown.