Soil contains number of diverse living organisms assembled in complex and varied communities, ecological niches and structure varied number that also vary from soil to soil, patch to patch. Totally 10 fungal species were isolated from sugarcane field soil in Thanjavur (Dt.). The species diversity was encounted with the fungal species belonging to the class Deuteromycetes. Production, optimization, purification and characterization of an extracellular Protease and Xylanase from Trichoderma koningii. The xylanase activity peaked at 55°C and pH of 7 on Trichoderma koningii. The protease activity of Trichoderma koningii peaked at 35°C and pH of 5. The role of Trichoderma protease and xylanase in biological control as well as their advantages in biotechnology. This enzyme is very helpful in industrial sector especially in pulp and paper industry, food industry, biocontrol and also in bioethanol production. Pilot scale production of this enzyme in industries can reduce the import cost of the enzyme and make the whole process cost effective.