Petroleum based products are the major source of energy for industries and daily life. Leaks and accidental spills occur regularly during the exploration, production, refining, transport, and storage of petroleum and petroleum products. In the present study we isolated the bacteria from diesel contaminated soil and screened them for diesel biodegradation capacity. One monoculture isolate identified by 16S rRNA gene sequence analysis to be Acinetobacter baumannii was further studied for diesel oil biodegradation. The effects of various culture parameters (pH, temperature, NaCl concentrations, initial hydrocarbon concentration, initial inoculum size, role of chemical surfactant, and role of carbon and nitrogen sources) on biodegradation of diesel oil were evaluated. Optimal diesel oil biodegradation by A. baumanii occurred at initial pH 7, 35°C and initial hydrocarbon concentration at 4%. The biodegradation products under optimal cultural conditions were analyzed by GC-MS. The present study suggests that A. baumannii can be used for effective degradation of diesel oil from industrial effluents contaminated with diesel oil.