This study aimed at the isolation and identification of Klebsiella spp. from dairy product to establish their public health significance by determining their virulence factors, antibiotic resistance and extended-spectrum b-lactamase (ESBL). Klebsiella pneumoniae, Klebsiella oxytoca and Klebsiella rhinoscleromatis were identified in 25 (58%), 11 (26%) and 7 (16%) isolates, respectively. A high prevalence of Klebsiella isolates had virulence factors such as siderophore production (63%), serum resistance (32.5%) and hemolytic activity (58%). ESBL-producing Klebsiella spp. was detected in 35% of the isolates. Resistance to the antimicrobial agents tested was found to be much higher in the ESBL-producing Klebsiella spp. than in non-ESBLproducing isolates. All ESBL-producing Klebsiella spp. showed high-level resistance to cephalosporins and monobactams. The majority of the serum resistant, siderophore, hemolysin and ESBL producers were K. pneumoniae. PRACTICAL APPLICATIONSThese results suggest that the determination of siderophore production, serum resistance and hemolytic activity in dairy isolates of many gramnegative pathogens could be valuable tests for the dairy industry. In addition, antibiotic resistance and extended-spectrum b-lactamase (ESBL) can also be used as adjunct tests in the dairy industry. In the absence of control measures, serum resistant, siderophore, hemolysin and ESBL-producing organisms might be transmitted to humans by the consumption of milk and milk products and may cause a public health problem.