In this study, a glycolipid type of biosurfactant (BS) was produced, its characteristics were evaluated and several flooding tests were conducted in a micromodel to investigate its potential for enhancing oil recovery. A rhamnolipid BS producer strain was identified as a bacterium belonging to the genus Pseudomonas aeruginosa. This BS showed good stability at temperatures of 40–121 °C, pH values of 3–10 and salinity up to 10% (w/v) NaCl which is important in Microbial Enhanced Oil Recovery (MEOR). The rhamnolipid decreased the surface tension of water from 72 to 28.1 mN m−1 with a critical micelle concentration of 120 ppm. Thin layer chromatography, FTIR spectroscopy, 1H-NMR and 13C-NMR spectroscopy revealed the glycolipid structure of the BS. Response surface methodology was applied to optimize BS production. Several micromodel flooding tests were conducted to study the capability of the produced rhamnolipid in enhanced oil recovery for the first time. An oil recovery factor of 43% was obtained at 120 ppm of BS solution whereas the recovery factor obtained for water flooding was 16%. Contact angle measurements showed that BS solutions altered the wettability of a glass surface from oil wet to a strongly water wet state. Also the results illustrated that all BS solutions were impressive in microbial enhanced oil recovery (MEOR) and using the produced BS a considerable amount of trapped oil can be extracted due to interfacial tension reduction, wettability alteration towards water wet conditions and improving the mobility ratio.