Paenibacillus graminis strains were described recently as cyclodextrin ( CD) producers. Cyclodextrins are produced by cyclodextrin glucanotransferase ( CGTase) which has not been characterized in P. graminis. Similar amounts of alpha- and beta- CDs were produced by P. graminis ( MC22.13) and P. macerans ( LMD24.10(T)). Primers were designed to sequence the gene encoding CGTase from P. graminis. A phylogenetic tree was constructed and P. graminis CGTase protein showed to be closer ( 79.4% protein identity) to P. macerans vertical bar P31835 vertical bar. Hybridization studies suggested that the gene encoding CGTase is located in different positions in the genomes of P. macerans and P. graminis.