Bioremediation method is considered to be more economical and safe method for the treatment of oil contaminated site. It has been observed that micro-organism that grows on oil contaminated soil is much capable of degrading oil than those microorganisms which are found on non-contaminated site of oil. This work was carried out to isolate microorganisms from vegetable oil-polluted sites and screen them for their lipolytic activity. The physicochemical properties of the oil contaminated soil samples were analyzed and the Microorganisms were isolated from oil mill soil samples contaminated with different types of vegetable oils such as neem oil, gingilly oil and coconut oil. The isolates were characterized, identified and screened for their oil degrading property. Those cultures, which showed oil degrading property, were used for the optimization of growth conditions by using broth dilution method and the zone of inhibition were identified by using different concentrations of vegetable oil samples. Hence, this study concluded that the selected bacterial strains which were isolated from the vegetable oil mill contaminated soil sample were more efficiently degrade the vegetable oil samples than the control sample.