Enzyme immobilization using biopolymers like sodium alginate enhances their stability and reusability, making them valuable in biotechnology. Soil samples from oil-contaminated sites in Surat, India, were screened on Tween 80-supplemented nutrient agar. A potent lipase producer, VC 13, was selected and characterized by morphological, biochemical, and molecularly characteristics and identified Cytobacillus sp. And its phylogenetic analysis was carried out. Whole-cell immobilization was done using 1.5% sodium alginate, forming CaCl₂-stabilized beads. Parameters such as temperature, pH, biomass, alginate concentration, and storage stability were optimized. Immobilized cells showed good enzyme activity, with optimal performance at 37°C, pH 8.5, 100 mg biomass, and 3% alginate. The enzyme retained activity over extended storage, suggesting its potential for industrial use.