An extracellular organic solvent stable lipase produced by solvent tolerant strain of Geobacillus stearothermophilus PS11 was purified and characterised. The overall purification was 8.04 fold with a yield of 22.6%. The molecular weight of purified lipase was approximately 27.5 kDa. The purified lipase activity was stable (745 EU/ml at 72h incubation) in presence of toluene, benzene, propanol, methanol etc. The enzyme activity was maximum (764 EU/ml) when assayed under optimum temperature and pH of 50⁰C and 10.0, respectively. The enzyme showed stability at a wide range of temperature from 10⁰C to 60⁰C. This solvent stable lipase can be a novel tool for biodiesel industry.