The present study was undertaken to investigate and optimize the possibility of xanthan gum production by Xanthomonas campestris PTCC1473 in 500ml shake flasks on the second grade date palm. Using an experimental response surface methodology (RSM) coupled with a central composite design (CCD), three major independent variables (nitrogen source, phosphor source and agitation rate) were evaluated for their individual and interactive effects on biomass and xanthan gum production in submerged fermentation. The optimum conditions selected for gum production were 3.15 g.l^-1 for nitrogen source, 5.03 g.l^-1 for phosphor source, and 394.8 rpm for agitation rate. Reconfirmation test was conducted, and the experimental value obtained for xanthan production under optimum conditions was about 6.72±0.26 g.l^-1, which was close to 6.51 g.l^-1 as predicted by the model. A higher yield of biomass production was obtained at 13.74 g.l^-1 for nitrogen source, 4.66 g.l^-1 for phosphor source, and 387.42 rpm for agitation rate. In the next stage, scale-up from the shake flasks to the 1-L batch fermentors was carried. By using the optimum conditions for xanthan gum, the biomass and xanthan gum concentrations after 72h in three levels of air flow rate (0.5, 1 and 1.5 vvm) were obtained as 3.98, 5.31 and 6.04 g.l^-1,and 11.32, 15.16 and 16.84 g.l^-1, respectively. Overall, the second grade date palm seemed to exhibit promising properties that can open new pathways for the production of efficient and cost-effective xanthan gum.