Aluminum hydroxide finds many industrial applications. Bauxite contains minerals from which aluminum hydroxide Al(OH)3 is leached through Bayer process. Impurities present in it are crucial toward the yield and purity of the end product. Indigenous bauxite ore found at Khushab, Punjab Quarry, was analyzed by X-ray fluorescence (XRF) and X-ray diffraction techniques. Effect of molar ratio, temperature and lime on product yield and purity of the product was investigated. Product samples were characterized by XRF spectroscopy method. Results revealed a product yield of 86% at 245°C, 1.95 molar ratio and 10% lime. The silica content of the product was below 0.4% under these conditions. Lime was found helpful in controlling the solubility of impurities in the caustic soda solution. [ABSTRACT FROM AUTHOR]