The actinomycete strain AMLK-335 was antagonistic to vancomycin-resistant enterococci (VRE). Based on the diaminopimelic acid (DAP) type, and morphological and physiological characteristics revealed by scanning electron microscopy (SEM), AMLK-335 was confirmed to belong to the genus Streptomyces. Analysis of the 16S rDNA nucleotide sequences found AMLK-335 to have a relationship with Streptomyces platensis. The production of antibiotic from this strain was most favorable when cultured on glucose, polypeptone, yeast extract (PY) medium for 6 days at $27^{circ}$. The antibiotic was identified as cyclo(L-phenylalanyl-L-prolyl) by comparing ti with the reported MS and NMR spectral data. Cyclo(phe-pro) from the PY cultures of AMLK-335 was most effective (K-98-258). Futhermore, cyclo(phe-pro) had antimicrobial activity against Bacillus subtilis, Microcuccs luteus, Staphylococcus aureus, and Saccharomyces cerevisiae, but it wa ineffective against Candida albicans, Streptomyces murinus, and Aspergillus niger.