Scientific interventions have identified lignocellulosic biomass as potential raw material for various industrial processes. However toxic byproducts released during the process result in deterioration of environment to a greater extent. Microbes can utilize these wastes for production of products of commercial value like bio-fuels, protein, organic acids and xylitol. However, high production cost and astringent operating conditions have been the major bottlenecks for its commercial production. In microbes, xylose is metabolized by xylose isomerase (XI) and xylose reductase-xylitol dehydrogenase (XR-XDH) pathways, with later having ability to transform pure xylose as well as xylose rich lignocelluloses. Efforts to find hyper producer isolates for xylitol production resulted in identification of one such isolate Pseudomonas gessardii VXlt-16 (MG770460) by 16s rDNA sequencing. Statistical optimization resulted in 7.28 folds’ increase in xylitol yield with 64.76% xylose bioconversion. Conversion of xylose to xylitol even at large scale suggests the possible application of bacterial isolate for the production of this useful product at industrial scale.