The primary objective is to isolate and characterize soil Streptomyces having the potential to synthesis new antibiotics. In this study, initially eighty nine isolates, then only seven were selected based on its antibacterial activities, among seven isolates, the Act-2 was selected as the best organism based on their prominent antibacterial and antifungal activity. The selected Act-2 isolate was undergone taxonomical and microscopical studies which were confirmed to the typical biochemical behavior resembling of Streptomyces species. These studies helped to design the bioprocess media for antibiotic production. The products such as Act-2 A, B and C were recovered by using the selected Act-2 strain for production of antibiotic from the designed production medium in bioprocess. The recovered antibiotics were purified by column chromatographic technique. The purified antibiotics were characterized by UV, FTIR, ¹H NMR and mass spectroscopic techniques. The purified compounds of Act-2A, B and C were found to be better antibacterial (25-200µg ml^-1), antifungal (25-200µg ml^-1) and cytocidal effects (1-40µg ml^-1). Since, the fractions of Act-2 A, B and C were found to be better antimicrobial activities, even though it has significant cytocidal activity. Therefore it is worthwhile to study this compound for further work will be required to understand the antitumor activity.