The contribution of the gut microbiota in production of digestive enzymes, regarding endogenous enzyme activities in fish seems pertinent in both marine and fresh water fishes. Chitinase are ubiquitous in nature, being found in eukaryotes, prokaryotes, archaea and viruses (Suzanne et al., 2001). It is believed that stomach chitinase have an indirect digestive function, helping to breakdown the exoskeleton of prey, which allows other digestive enzymes access to soft inner tissue (Fange and Grove, 1979; Lindsay, 1984; Clark Quayle et al., 1998). Chitosan is one of the most abundant biomasses on earth chitooligosaacharides from chitosan polymer have become a remarkable resource for the development of functional foods, artificial skin, medicine and other materials, For this study 5 fishes were collected from the Cuddalore and Pazhaiyar fish market. From the fish, intestine were taken and homogenized with the distilled water and then used for the further process. to study the enzyme activity of Chitinase by optimization parameters by using various nitrogen source, different pH and determining the stability of lipase enzyme by immobilization technique. The isolates were selected based on cellular morphology, growth conditions and biochemical tests. The different Bacillus species were screened by using Hicrome Bacillus for Pseudomonas cetrimide agar is used. The results obtained in the present study revealed that chitinase producers shows promising and good source of chitinase.