Antifungal activity of three Myxococcus spp., KYC 1126, 1136, and 2001, was tested in vitro against three phytopathogenic fungi (Botrytis cinerea, Colletotrichum acutatum, and Pyricularia grisea). Spore germination and mycelial growth of the three pathogenic fungi were completely inhibited by bioactive substances from a myxobacterium KYC 1126. In addition, the activity of KYC 1126 was fungicidal, but liquid culture filtrate of KYC 1126 did not affect protoplast reversion in C. acutatum. A bioassay of KYC 1126 filtrate against anthracnose in hot pepper was conducted in the greenhouse and field at 2009 and 2010. The incidence of anthracnose in control seedlings was 74%, but was reduced to 29% after KYC 1126 treatment. The control value with KYC 1126 was 60% while that with the fungicide dithianon was 42%. In the greenhouse, disease incidence with KYC 1126 was consistentely 10-35% lower than with fungicide as a positive control. The control value with KYC 1126 was 13.4% and 41.0%, whereas that with the fungicide was 52.3% and 63% in 2009 and 2010, respectively. Although anti-anthracnose activity of KYC 1126 was not maintained for long time in the field, the bacteriolytic myxobacterium KYC 1126 could be a prospective biocontrol agent.