Twenty lipase producing bacterial isolates were screened from marine samples collected from Northern coast of Tamilnadu, India. Isolate-4, identified as Pseudomonas sp. was found to be the potential cold active lipase producer with enzyme activity of 172 U/ml/min at 25°C and 133 U/ml/min at 15°C. The isolate was identified as halotolerant capable of tolerating up to 1.5 M NaCl and grew well at both neutral and alkaline pH. The isolate produced lipase optimally at pH 5.5 in presence of 0.5 M NaCl. Optimum incubation period for lipase production was recognized as 8 days. The crude enzyme extract from the isolate showed highest activity at 25°C and retained almost 80% of activity at 15 and 20°C, strongly suggesting its high catalytic activity at low temperatures. Optimum pH for lipase activity was found at pH 8. The enzyme displayed maximum thermal stability at 40°C by retaining 80% of initial activity for about 4 h, making it a promising candidate for industrial applications after due purification and characterization to find out its suitability for various applications.