Evaluation of soaps produced with ethanol extract of Physcia grisea was carried out to determine the antiseptic properties of the ethanol extract when used in soap production. The soap production was carried out by saponification process using ethanol extract as an antiseptic agent instead of synthetic chemicals. The quality of the soap produced from antiseptic agent and the extract were assayed for antimicrobial activity using Agar Cup Diffusion Technique. The result showed that the soap had a significant activity on Escherichia coli (E. coli), which is an indicator organism for fecal contamination. The minimum inhibitory concentration (MIC) of P. grisea extract was 10 mg/ml while that of the P. grisea antiseptic soap was 12.5 mg/ml. The extract also gave a natural brownish colour to the soap. This showed that antiseptic soap produced using P. grisea extract has the advantage of possessing attractive brown colour in addition to the novel antiseptic properties.