In present study diversity of phytase producing fungi isolated from soil of livestock farms in 10 percent villages of Lahore district of Punjab was explored. A total of 260 fungal isolates were obtained by soil dilution technique from soil samples (n=29) and qualitatively screened for phytase production on plates of phytase screening medium. Twenty eight (n=28) isolates were positive for phytase production. Out of 28 phytase producing fungi,13 isolates were toxigenic as detected by thin layer chromatography. Out of 15 non-toxigenic fungi, selected isolates (n=12) were identified as Aspergillus niger (n=7) and Aspergillus flavus (n=5) by morphological method using macroscopic and microscopic characters. The native non-toxigenic phytase producing fungi can be used for cost effective enzyme production on industrial level.