Investigations were carried out to optimize the culture conditions for the production of xylanase by Paenibacillus sp. DG-22, a moderately thermophilic bacterium isolated from timber yard soil. Xylanase production showed a cell growth associated profile. Xylanase activity was found only in the culture supernatant, while $eta-xylosidase$ activity was mainly associated with the cells. The formation of xylanase activity was induced by xylan and repressed by glucose and xylose. The production profile of xylanase was examined with various commercial xylan and maximum yield was achieved with 0.1∼ 0.5% birchwood xylan. Among various nitrogen sources tested, yeast extract was optimal for the production of xylanase. The xylanase activity was inhibited by $Co^{2+},; Cu^{2+},; Fe^{3+},; Hg^{2+};$ and$;Mn^{2+}$ ions while $Ca^{2+},; Mg^{2+},; Ni^{2+},; Zn^{2+}$ions and DTT stimulated xylanase activity Mercury (II) ion at 5 mM concentration abolished all the xylanase activity. The predominant products of xylan-hydrolysate were xylobiose, xylotriose, and higher xylooligo-saccharides, indicating that the enzyme was an endoxylanase.