The optimum conditions for the production of an antifungal antibiotic from Bacillus sp. YJ-63 were investigated. The oprimumized medium consisted of 1.5% soluble starch, 1% tryptone and 0.5% yeast extract, and temperature and initial medium pH for production were optimal at 35$^{circ}C$ and pH 6.0, respectively. Production yield was significantly improved by shaking culture using 50 ml medium in 500 ml flasks. Under these conditions, the production of the antifungal antibiotic was growth-dependent, from 35hrs into cultivation to the stationary phase and endospore formation.