Endo-1, 4-β-xylanase is an enzyme that depolymerises xylan, a major component of lignocellulose. The economic utilization of lignocellulosic biomass as a feedstock for the production of fuel and chemicals would represent a paradigm shift in industrial carbon utilization, allowing sustainable resources to replace the non-renewable energy resources like petroleum. However, lignocellulose is a highly recalcitrant material that is extremely difficult to depolymerize. Many microorganisms possess repertoires of enzymes which act synergistically to decompose various components of lignocellulosic biomass into simple sugars. Biomass-utilizing organisms are widely distributed within different species of archaea, bacteria, fungi, protists, plants, and animals. These organisms possess numerous lignocellulolytic enzymes that can hydrolyze cellulose, hemicelluloses, or lignin. The present paper gives a detailed account of strategies for production, purification and application of microbial xylanases. Conversion of lignocellulose into fermentable sugars and subsequent conversion into bioethanol has been discussed in the present paper.