Biosurfactants are surface active compounds produced by microorganisms. These molecules reduce surface tension between aqueous solutions and hydrocarbon mixtures. Oil contaminated soil were collected from different automobile shop. Bacillus and Pseudomonas sp were isolated from the four soil samples and these isolates were screened for biosurfactans activity using petrol, diesel and kerosene source by emulsification capacity, Surface tension measurement, Oil spreading techniques, Drop collapse method and Haemolytic activity. Biosurfactant production by the isolated bacterium using different pH, temperature and concentration of carbon source was studied. Effective production of biosurfactant in both Bacillus and Pseudomonas sp using mineral salt broth with optimiazed condition.