The fungal isolates identified as Pleurotus ostreatus and Gleophylum sepiarium isolated from sawdust dump-site were screened for protease enzyme production. High yields of protease enzyme were obtained by both fungi after 96h with concentrations of 1.6ug/ml/min for P ostreatus and 1.5ug/ml/min for G.sepiarium. Optimum temperature for the activity of protease produced by P.ostreatus and G.sepiarium was at 70oC with activity of 060ug/ml/min and 0.55ug/ml/min respectively. Optimum pH for the activity of protease produced by P.ostreatus and G.sepiarium was pH 7 with activity of 0.55ug/ml/min and 0.60ug/ml/min. The result showed that both isolates were good producers of extracellular protease enzyme which may be useful in industries.