Microbial inulinase has been proposed as the most promising approach to obtain fructose syrup from inulin which is used now, instead of sucrose, in many foods, pharmaceuticals, and beverages. Production and properties of inulinase from Arthrobacter sp. had been studied and the results revealed that, maximal yield of enzyme production is attained within 48 hours after inoculation, high inulinase production was observed when sucrose was used as additional carbon source, ammonium sulphate induced inulinase production by Arthrobacter sp., which was found as the best nitrogen source. Maximum inulinase production was obtained by using inoculum volume 5% (v/v), pH 7.0, at 30 ⁰C. The properties of crude inulinase from Arthrobacter sp. was also tested. The enzyme showed maximum activity at pH 7.5 and 50 ⁰C. The enzyme was stable more than 80% of its maximal activity at 30-50 ⁰C after 30 min heat treatment.