Bacillus species are one of the predominant soil bacteria that are able to produce essential secondary metabolites that have antagonistic effects on other microorganisms. They are Gram-positive, endospore-forming, chemoheterotrophic, aerobic or facultative anaerobic rods usually consisting of peritrichous flagella for motility. The major aim of this study was to isolate the antimicrobials producing Bacillus spp. from soil samples of different parts of the Kathmandu Valley, identify them and to assess their antimicrobial activity against different pathogenic bacteria. The test organisms used were Staphylococcus aureus (ATCC 25923), E. coli (ATCC 25922), Pseudomonas spp., Salmonella spp., methicillin-resistant Staphylococcus aureus (MRSA) and extended spectrum beta-lactamase (ESBL) producing E. coli. Twenty four isolates from 9 soil samples identified as Bacillus spp. showed the zone of inhibition around their growth on Nutrient agar during isolation. These 24 isolates were chosen for primary screening of production of antimicrobial by perpendicular streaking method using four test organisms. . Of these 24 isolates, six isolates showing a significant zone of inhibition (≥1mm) against two or more test organisms from the primary screening were chosen for secondary screening which was further tested with six test organisms including ESBL E.coli and MRSA. They were further characterized through different physiological and biochemical tests. All 6 isolates showed inhibitory action against MRSA and the largest zone of inhibition (30mm) was shown by isolate U6. Isolate U3 was found to have broad spectrum antimicrobial activity with inhibitory effect against gram negative organisms- Pseudomonas and Salmonella and gram positive organism S. aureus (ATCC 25923). Isolate U5 showed a zone of inhibition of about 25mm against S. aureus which was comparable to that of erythromycin. Hence, this study determines the soil in Kathmandu Valley as a potential source of antimicrobial producing Bacillus spp. and recommends isolation and further characterization of Bacillus isolates as a possible source of novel drug to combat with the emergence of multidrug resistant strains