The objective of this work is to study the biodegradation of used lubrication oil by actinobacteria. The culture was collected from the soil samples taken from Muthupettai, a marshy land. Various strains of bacteria were extracted and introduced into the sample (used engine oil). The samples were given continuous movement and constant temperature in shaking incubator for a month. Result was observed by FTIR Method twice, at an interval of 15 days once. There was a prominent degradation of oil at the of 30 days and the superficial bacterial strain also identified.