Exopolysaccharides (EPSs) are high molecular weight polymers consisting of different sugar residues they are preferable for replacing synthetic polymers as they are degradable and nontoxic. Many microorganisms possess the ability to synthesize and excrete exopolysaccharides with novel chemical compositions, properties and structures to have potential applications in different fields. The present study attempt to optimize the production of EPS by marine Bacillus subtilis SH1 in addition to characterization and investigation of different valuable applications. Effect of medium type, incubation period and pH were studied using the one factor at a time experiments. It was shown that the highest productivity (24 gl⁻¹) of exopolysaccharides was recorded by using yeast malt glucose medium with pH 9 at the fourth day of incubation. Experimental design using Response Surface Methodology (RSM) was applied to optimize various nutrients at different concentrations. The finalized optimized medium contained (gl⁻¹) glucose (5), peptone (2.5), yeast extract (4.5) and malt extract (4.5) increased the production of EPS to 33.8 gl⁻¹ with1.4 fold increase compared to the basal medium. Chemical characterization of the extracted EPS showed that, FTIR spectra exhibited bands at various regions. Moreover, HPLC chromatogram indicated that the EPS was a heteropolysaccharide consisting of maltose and rhamnose. The study was extended to evaluate the potentiality of the extracted polysaccharides in different medical applications. Results concluded that, EPS exhibited antibacterial activity against Aeromonas hydrophila, Pseudomonas aeruginosa and Streptococcus faecalis and the highest antibacterial activity (7.8, 9 and 10.4 AU/ml) was against S. faecalis at 50, 100 and 200 mg/ml respectively. The EPS exhibited various degree of antitumor effect toward the tested cell lines (MCF-7, HCT-116 and HepG2). In addition, EPS exhibited antiviral activity at 500 μg/ml. The antioxidant capacity increased with increasing the concentrationof the sample. Scanning electron microscopic analysis showed that EPS had compact film-like structure, which could make it a useful in the future applications as in preparing plasticized film.