Bacterial endophytes are prolific producers of novel bioactive compounds. New antimicrobial compounds and antibiotics are necessary to combat growing antimicrobial resistance. The present study focuses on the isolation of endophytic bacteria and extraction of bioactive compounds from the medicinal plant Saraca asoca. Two endophytic bacterial isolates were obtained from the flower and leaf tissues of Saraca asoca. The screening of endophytic bacteria based on their antimicrobial activity against the test organisms, Staphylococcus aureus, Pseudomonas sp., Escherichia coli and Klebsiella sp. revealed that the isolate As from leaves of Saraca asoca exhibited significant antimicrobial activity. The isolate was characterized based on its morphological, cultural and biochemical properties. Molecular analysis revealed that the isolate As showed 99.52% similarity to Enterobacter cloacae strain ALD4.5. Bioactive compound was extracted from the isolate As using ethyl acetate and it showed significant growth inhibition against Staphylococcus aureus.