This paper describes production and characterization of L-Asparginase and Lipases from Aspergillus species isolated from chilli rhizosphere in the vicinity of Guntur, Andhra Pradesh. The isolated fungi were screened for L-asparaginase production using Czapek’s agar media. On the basis of pink colour zone formed, ten fungal strains was selected and identified as Aspergillus species and names as Apergillus sp. DPB-365. This study investigates the optimization and production of L- Asparagine and Lipase. Days of incubation, temperature, pH, supplementary carbon and nitrogen sources on the production of L- Asparagine and Lipase was studied and accordingly optimum conditions were determined. The isolated soil fungi Aspergillus species is a strain that produces high levels of L- Asparagine, under optimized culture conditions, viz., on the third day of incubation at an optimum pH of 7.5 and temperature of 37⁰C. The isolate Aspergillus sp. DPB-365 showed highest enzyme L- Asparginase production 71.2 IU/mg and Lipase production 65.5 IU/mg respectively. L-asparaginase has been used as anti-tumor agent for the effective treatment of acute lymphoblastic leukemia and as food processing aid to reduce the acrylamide formation during frying of starchy foods at high temperature.