Yellow pigmented microorganisms Staphylococcus aureus , Bacillus subtilis , Micrococcus luteus, Flavobacterium sp. , Cytophaga sp. , Brevibacterium sp. , Exiguobacterium sp. , Erwinia sp. etc. are capable to produce high amount of Carotenoid. Therefore these natural pigments are a promising alternative source for natural as well as synthetic food grade pigments and have huge potential for applications in foodstuff because of their safety to use, nutritional and medicinal properties, non-toxicity, non-carcinogenicity and biodegradability. The aim of the present was to isolate the yellow pigmented microorganisms from soil, some of which are capable to produce amylase. We have isolated some intracellular yellow pigmented bacteria from different types of soil of Surat,Gujarat. 10 different types of soil samples were collected from which total 24 yellow pigmented bacteria were obtained. Isolates were identified and characterized by various morphological and biochemical tests. All the isolates than were subjected to determine pigment production rate on nutrient agar plates and amylase producing efficiency on starch agar plates. Some isolates are able produce amylase on starch agar plate. It was also found that Micrococcus sp. are diversely present in all types of soil whereas Xanthomonas sp. , Bacillus sp. , Microbacterium sp. And Xanthobacter sp. are mainly present in wet soil and garden soil. Isolate DS2 shows highest carotenoid production which is further used to produce carotenoid in media optimised in pH, temperature and salt concentration. Thus, the current study can be useful step for lab-scale pigment production, purification and its application in various industries as well as large scale amylase production from yellow pigmented organisms.