Biosurfactants were found to be a suitable candidate for environment clean-up and as an alternative to conventional treatment systems. In the present study, a polyaromatic hydrocarbon degrading organism Bacillus halotolerans was screened for its ability to produce biosurfactant during hydrocarbon degradation. The bio-surfactant activity of the organism was screened by using various methods like oil spreading technique, emulsification assay, foam height analysis and parafilm-M test. The design expert software was used to optimize the suitable conditions for the production of biosurfactants. The optimum conditions were determined as pH 6, Chrysene-100 ppm, nitrogen source -1000 ppm and at 144 hrs using the design of experiments. The organism showed good oil degradation capacity and maximum growth was achieved in 6 days. Biosurfactant obtained from the biodegradation medium was confirmed to be lipopeptide using TLC, FTIR and GCMS.