The growth of Streptomyces aureus strain BG03 was the best on Ken Knight`s agar medium. Among the different media tested, Crawford`s media was the best for the production of bioactive compounds by S. aureus strain BG03. The culture filtrate of S. aureus strain BG03 extracted from Crawford`s broth amended with starch as a carbon source, peptone as a nitrogen source, temperature of 35°C and pH 7.5 recorded the highest growth inhibition and inhibition zone against Rhizoctonia bataticola causing dry root rot in urdbean. Therefore the above mentioned parameters were optimum for the maximum production of bioactive compounds by S. aureus strain BG03. The crude metabolites extracted from S. aureus strain BG03 was found to be promising in reducing the mycelial growth of R. bataticola. Gas Chromatography-Mass Spectrophotometry (GC-MS), analysis of crude metabolites of S. aureus strain BG03 revealed the presence of seven compounds having antifungal activity
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