The purpose of the research was to isolate and characterize lactic acid bacteria (LAB) from natural sources like samples dosha batter, fermented milk, fermented fruits and fermented vegetables were screened for the study. Collecting samples from natural environments, isolating lactic acid bacteria using specialized media, analyzing the isolated strains for their ability to produce lactic acid, tolerate acidity, and exhibit other favorable qualities, and exploring fermentation and preservation techniques: The isolated bacteria can be evaluated for their capacity to ferment milk and create desirable characteristics for commercialization. Based on morphological and biochemical tests eight isolates were identified to be lactic acid bacteria (LAB). All the isolates were screened for their starter culture properties of lactic acid production, flavour, exopolysaccharide production and probiotic activity. The isolate Lactobacillus bulgaricus produced acid at highest level (0.63 ± 0.005%LA) on 3.5 h incubation. Pediococcus pentosaceous and Lactobacillus bulgaricus showed flavor production prospective. Out of the eight isolates Pediococcus pentosaceous and Streptococcus thermophilus showed exopolysaccharide (EPS) production. Pediococcus pentosaceous were able to survive under low pH (pH 2.0, 2.5 and 3.0) and 0.3 per cent bile salt concentration and considered as a potential probiotic candidate. Fermented milk was prepared using these selected LABs and chemical, microbiological and sensory qualities were analyzed by standard methods. Overall sensory value was highest for sample made using the isolate Streptococcus thermophilus, EPS producing strain. Use of exopolysaccharide producing culture in preparation of fermented milk reduced the level of syneresis.