Three psychrotolerant Fusarium spp. were isolated from soil of Jammu city. The degradation potential of these isolates for various substrates like tributyrin oil, cellulose, starch, casein, urea, pectin and gelatin was recorded at low temperature and zone of clearance was determined. All the isolates were found to be positive and showed good results for tributyrin oil degradation at 15±0.2°C. Fusarium sp. F10 showed higher in degradation of cellulose and starch but there was no affinity towards casein and gelatin. Fusarium sp. F8 showed highest lipase activity than F5 and F10 isolates. Studies such as this can be useful for the production of various important cold active enzymes for many industrial purposes.