Abstract: We present the Chandra imaging and spectral analysis of NGC 4968, a nearby (z = 0.00986) Seyfert 2 galaxy. We discover extended (approx. 1 kpc) X-ray emission in the soft band (0.5-2 keV) that is neither coincident with the narrow line region nor the extended radio emission. Based on spectral modeling, it is linked to on-going star formation [approx. 2.6-4 Mass compared to Earth yr(exp.- 1)]. The soft emission at circumnuclear scales (inner approx. 400 pc) originates from hot gas, with kT app…