Some endemic diseases are associated with the dairy production these are called production diseases. One of them is mastitis. It is the most expensive disease that causes large economic effects. It is the most expensive diseases on dairy farms. Due to chronic nature of these diseases economic damage is spread out and economic damage of certain factors such as milk production decreases cannot seen directly. Mastitis caused by Staphylococcus aureus is a major concern to the dairy industry due to its resistance to antibiotic treatment. In future the phage therapy may replace antibiotic treatment for combating the infection caused by Staphylococcus aureus because phages are more useful in the study of fundamental aspects of molecular biology and in the diagnostic laboratory for the identification of pathogenic bacteria. In the present research bacteriophage was isolated against Staphylococcus aureus from the sewage water. The isolated bacteriophage showed lytic activity against these bacteria.so it signifies the underlying potential of bacteriophage therapy.