A strain, Streptomyces sp. No. 771, was isolated from a soil sample collected in Chiba Prefecture. The strain produced a new antibiotic which was isolated as colorless hexagonal crystals and named hondamycin. Hondamycin is mainly active against phytopathogenic fungi and Trichophyton, but is not active against any bacteria. The LD50 was 1.43mg/kg by intraperitoneal route and greater than 500mg/kg orally. This strain was recognized to be a variety of Streptomyces griseochromogenes and named Streptomyces griseochromogenes var. albicus.