The growth and protease production by Vibrio alginolyticus was examined in the present investigation. The maximum protease activity was 2037U/ml using 1% (w/v) of potato peel extract as the carbon source. Potato peel is an inexpensive and readily available domestic waste and thus it can be used as the cost effective crude material for the production of an extracellular protease. The organic nitrogen source, fish scrap powder proved to be an effective organic nitrogen source, where the protease activity was 1374 U/ml. A maximum protease activity of 620(U/ml) in aerobic and 368 (u/ml) in anaerobic condition were produced in 24h in a 3L bioreactor respectively. The enzyme acted optimally at pH 8.8 and temperature 36ËšC. 2% NaCl concentration was suitable for efficient enzyme production. The activity of the enzyme was inhibited by all the inhibitors tested.. In the growth curve studies was found to be fast growing. Among the metal ions tested calcium chloride and magnesium chloride enhanced the protease by 7%. The molecular weight of the enzyme was determined as 38KDa. The enzyme retained more than 89% of its activity after 60 min of incubation at 40ËšC in the presence of various detergents.