Assessment of Aspergillusmelleus strain MP3 fungi for production of protease by solid state fermentation isolated from marine sponges were thoroughly analysed. Optimization of production parameters for production of protease was done by the solid state fermentation by altering the physical conditions. Isolation, purification and characterisation of protease from this novel strain reports interesting application in textile and leather industry. This work is one of its kinds to extract protease from such novel fungi from unusual niche.