The production of α-amylase by Bacillus licheniformis was optimized. Maximum α-amylase production could be achieved after an incubation period of 48 hrs, at 40 oC and pH 7.0. Starch (1 %) was found to be the best carbon source among the tested carbohydrates. The organism grew well and produced high levels of α-amylase using beef extract as a nitrogen source. The produced α-amylase was immobilized on various carriers by different methods and the properties of the enzyme were compared before and after immobilization. Compared to the free enzyme, the optimum pH after immobilization enzyme changed to acidic range and the optimum reaction temperature was shifted slightly to 70 - 80 0C. The thermal stability of the immobilized enzyme was found to be higher than that of the free one. Among the tested salts, CaCl2 exerted a stimulating effect on the activity of α- amylase.