A aqueous two phase system (ATPS) comprising of PEG (Average mol. Wt: 4000, 6000, 8000) – lithium citrate salt-water systems were studied. The basic studies like binodal curve data generation and equilibrium studies were carried out. Furthermore, the binodal model and Othmer-Tobias and Bancroft models for phase equilibria were used for reproducing the experimental binodal data and phase equilibrium composition data, respectively. Good agreement was obtained with the experimental binodal data and tie line data with the models. The effective excluded volume values were obtained from the binodal model for the present ATPS. The tie line length was determined through the phase equilibrium composition data. This system was used to partition crude proteins of the fish industry effluent. The effects of PEG and salt weight fraction in terms of tie line length and effective excluded volume on partitioning coefficient of crude protein were studied in detail. From the results it was observed that, the crude proteins present in the fish effluent were partitioned in the PEG rich phase and the maximum partition coefficient of 7.82 was obtained. The results are discussed in the context of practical potential of this citrate based ATPS in separating crude proteins from fish industry effluent.