Bacillus thuringiensis (Bt) subspecies produces metalloproteases and serine alkaline proteases (endogenous) which affect sporulation and entomotoxicity against different insect orders. The production of Bt proteases is investigated in conventional medium and alternative substrates with future repercussions on Bt formulations and larval mortality. Relationship between protease activity and total cell count during Bt fermentation has been discussed while protease activity as a potential indicator of entomotoxicity has also been explored. In general, the proteases influence entomotoxicity in two divergent ways-processing of inactive protoxins to active toxin fractions (by endogenous Bt as well as exogenous larval midgut proteases) and degradation of protoxins to fragments which sometimes lack insecticidal activity (usually by Bt proteases). In fact, the function of endogenous (intra and extracellular) proteases is ambiguous and has been raising serious questions on their role in larval mortality. The review explores various schools of thoughts (traditional as well as advanced) to solve the enigma of protease interactions with crystal toxins at different levels (sporulation and insecticidal action). (C) 2007 Elsevier Ltd. All rights reserved.