Abstract: The ethyl acetate extract of yeast extract-glucose broth medium of an Actinomycetes strain, Streptomyces yielded a reddish yellow antibiotic metabolite by chromatographic technique and was identified as 2 N-butanamide 3-methyl 4-methoxy 5-β-L-arabinosyl propanophenone (MZ-4) on the basis of spectral data. The compound exhibited significant antibacterial activity against five gram positive and nine gram negative bacteria when compared with standard Kanamycin antibiotic. The zone of inhibition were observed between 17 to 20 mm. The minimum inhibitory concentration (MIC) of the compound was determined against four gram positive and gram negative bacteria and the values were found between 32 and 64 μg ml-1.