Bacillus cereus JCM44 was isolated from the soil samples collected from the Kanyakumari district of Tamil Nadu, using a minimal agar medium. It was characterized by its ability to biotransform chitin into chitosan at 30°C for 48 h. The Chitosan (CS) was recovered by using 0.1N Sodium hydroxide and 2% acetic acid. It was confirmed by iodine solution with dark purple colouration and qualitatively identified by acetone and ethanol. CS formation has been identified from X-ray diffraction (XRD) and Fourier Transform Infrared Spectroscopy (FTIR). Scanning Electron Microscopy (SEM) analysis elucidated the formation of an average size of 349 nm to 1µm with the morphology of a non-porous, smooth membrane with irregular shape and crystallite. The Zeta potential study of the bacterially synthesized chitosan showed their excellent stability with a surface charge of -2.28 mV. Bacterially Synthesized Chitosan (BSC), with a polydispersity index (PDI) value of 0.626 indicates the aggregation of particles. The peaks of higher wavenumber confirm the formation of blend in Bacterially Synthesized Chitosan (BCS) at OH and NH was denoted. The XRD analysis of the BSC detected the crystallinity of the samples when compared to the commercial chitosan.