Proteolytic activity was detected in neem (Azadirachta indica) exudate gum when tested with casein and albumin as substrates. The enzyme activity was separated into two fractions by chromatography on TEAE-cellulose after EDTA treatment. Both the enzyme fractions were fairly stable to high temperatures and wide range of pH conditions. The pH optima were found to be around 6.5. Phenylmethyl sulphonylfluoride inhibited the activity of both the fractions. EDTA, Β-mercaptoethanol, tosylamide phenylethylchloromethylketone, tosyllysine chloroimethylketone,p-chloromercuribenzoate and dithiobis-2-nitrobenzoie acid did not affect the activity of the two enzyme fractions. The two fractions had no hydrolytic action on a variety of synthetic substrates tested.