Physicochemical properties of a new polysaccharide produced by Bacillus circulans were investigated by comparing with those of xanthan gum, locust bean gum, guar gum, sodium alginate and carboxymethylcellulose (CMC). The polysaccharide produced by B. circulans (BPS) showed a high water-holding capacity at 0.1% concentration together with a good emulsifying effect of oil next to xanthan gum. The viscosity of 1% BPS solution was about 900cP, the value being nearly equal to that of xanthan gum. The viscosity of BPS solution was almost unchanged at a pH range between 5 and 9, and the heat treatment of BPS at 100°C for 30min brought about a 25% decrease in viscosity. The addition of 30% glucose to BPS solution enhanced the viscosity by 20%, but the addition of 1% citric acid lowered the viscosity to about 30%. A synergistic effect of BPS on the increase in the viscosity of locust bean gum or guar gum solution was observed. A maximum viscosity of a mixed solution of BPS and locust bean gum or guar gum was obtained at a ratio of about 2:8(v/v). A Young's modulus of a film prepared from BPS was apparently higher than that of CMC and guar gum.