Caffeine, a significant naturally occurring alkaloid in beverages like tea and coffee, can be degraded by bacteria. Prolonged caffeine consumption can stimulate adrenal glands, cause irregular muscle activity, cardiac arrhythmias, and withdrawal symptoms such as headaches and fatigue. Beyond its health-related concerns, the environmental impact of caffeine degradation is noteworthy. Effluents from coffee industries contain high caffeine concentrations, and the discharge of such effluents into lakes poses a risk to the portability of drinking water. This study isolated a novel bacterium from agricultural soil, identified as Bacillus sp. KS38 through 16 S rRNA gene sequencing, which can metabolize caffeine as the sole carbon and nitrogen source. The bacterium exhibited Gram-positive characteristics. Response surface methodology (RSM) optimized bacterial growth conditions. The relevant parameter for the degradation of caffeine was obtained by first screening the parameters using the Plackett-Burman design. Using central composite design (CCD) and RSM, the important parameters were determined to achieve the ideal degradation conditions. The identified the ideal degradation conditions: 0.66 g/L caffeine, 0.85 g/L glucose, pH 6.83, and 20.5 °C. RSM predicted a bacterial growth of 0.591, which was confirmed experimentally. This bacterium has potential applications in wastewater treatment and caffeine bioremediation.