Use of expensive raw material and inefficient extraction method has limited the production of biopolymers at pilot scale compared to commercial plastics. Hence, this research work spotlights on production of polyhydroxyalkanoate (PHA) usingBacillus endophyticusMTCC 9021 in different dilutions of untreated distillery effluent (10-25%) among which 10% dilutions exhibited maximum PHA production. Statistical optimization through Response surface methodology yielded a maximum PHA of 6.45 +/- 0.07 g/L. The obtained PHA was analysed by FTIR and NMR which confirms the polymer to be polyhydroxybutyrate. The extracted PHA was reduced to nanoscale to develop PHA nanosheet which exposed higher oil absorption and retention ability than normal PHA sheet. Further the rapid degradation of PHA nanosheet with synthetic plastics in garden soil emphasises their unique application in wide sectors.