The Bacillus sp. AGT which produces an alkaline protease enzyme was isolated from the tannery effluent. Subsequently after purification of Bacillus sp. AGT alkaline protease enzyme, attempt was made to know its role and effectiveness in dehairing process. It is important to use the protease enzyme in tannery industries as it ease the hair removal process without much difficulties and it is considered as alternate for chemical treatment. Chemical treatment involves usage of large amount of hazardous chemicals such as sodium sulphide and lime. Substantially, these chemicals are negatively impacting the environment. Soaking is the first process in the tannery in which fresh or dry salted preserved hides are treated for the removal of extraneous matter, rehydration of inter-fibrillary protein and loosening the cementing substance of the fibre. This process was facilitated by the addition of protease enzymes. After eighteen hours of treatment with Bacillus sp. AGT protease, intact hair was recovered by simple scraping from the portion of the hide treated. In this study role of Bacillus sp. AGT protease in dehairing process is explored.