A strain of Bacillus sp. (112A) showed intracellular inclusion bodies when grown in the presence of molasses. The inclusion bodies were stained with Nile blue suggesting polyhydroxyalkanoates (PHA). The Bacillus sp. 112A strain produced PHA at different concentration of molasses as carbon source. The highest amount of PHA produced was 1.9 g/L in the presence of 1% molasses as carbon substrate in the medium. This strain also produced PHA under nitrogen, potassium, sulphur and phosphate limiting conditions, where it could produce high amount of PHA under nitrogen limiting condition than other limiting conditions. The produced polymer was extracted, quantified and later analyzed by GC and TEM, where TEM showed not all the cells contained heavy PHA bodies, suggesting the potential for increasing the overall yield.