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We have discovered one novel esterase from endophytic bacterial gene libraries. These esterases show similarity to α/β-hydrolases. They show more activity on short chain fatty acids than long chain fatty acids. Est-FO-30 exhibits enantioselectivity. Est-FO-30 shows more activity on R-menthyl acetate than S-menthyl acetate. Est-FO-30 also shows good activity on linalyl acetate (an industrially important substrate). This enzyme can also be important for industrial use because it exhibits activity on industrially important esters, enantioselectivity and show thermo stability.