Wool is a natural animal fiber commonly used in fabrics, but requires physical and chemical processing treatment for such applications. With the aim of developing new woollen textile products using environmentally friendly treatments, proteolytic bacteria were isolated from raw wool samples of Merino sheep and screened for wooldegrading activity. Two isolates were identified as Bacillus megaterium L4 and Bacillus thuringiensis L11 by 16S rRNA gene sequence analysis. Both isolates grew on a minimal medium using wool-fiber or wool-fabric as sole carbon and nitrogen sources. Bacterial growth was correlated with extracellular protease activity, and maximal protease production was in early stationary phase. The exoprotease produced by L11 was found to be a thermotolerant metalloprotease stabilized by calcium or magnesium, and had optimum activity at pH 7.0 and temperature at 40°C. During bacterial growth the wool-fiber lost weight, but it did not show changes in diameter. When wool-fabric was used instead of wool-fiber weight loss and non-shrinking was found. These are encouraging results for textile processing that should be useful for development of new textile products by direct microbial processing.A potential alternative that could be suggested from our study would be to treat wool with wool-degrading microorganisms in order to develop environmentally friendly processes.