Abstract: A Streptomyces bacterium, designated AZ-C442 was isolated from a soil sample collected from Luxor governorate, Egypt. Phylogenetic analysis based on 16S rRNA gene sequences and culture characteristics demonstrated strain AZ-C442 affiliation to the genus Streptomyces tanashiensis. This strain exhibited inhibitory activity against gram-positive and gram-negative bacteria and unicellular and filamentous fungi by evaluation of optimum environmental and nutritional conditions. It was found that the Streptomyces tanashiensis AZ-C442 produced and excreted into the culture medium a large amount of the compound, which was isolated, purified and structurally characterized as known Luteomycin like antibiotic on the basis of combined spectral analyses which indicates a suggested impirical formula of C15H30N2O10. Luteomycin showed inhibitory effects against Staphylococcus aureus, Klebsiella pneumonia, Escherichia coli and Salmonella typhi, moreover, against Aspergillus flavus, Alternaria alternate and Saccharomyces cerevisiae.