A gram-positive, aerobic actinomycete was isolated from soil. Spherical cells of this organism occur singly or form packets, which may cluster. The diagnostic diamino acid of the cell wall peptidoglycan is LL-diaminopimelic acid. The predominate menaquinone is MK-8 (H4), and the main fatty acids are 13-methyl tetradecanoic acid and 12-methyl tetradecanoic acid. The diagnostic polar lipids are phosphatidylethanolamine and phosphatidylinositol. The DNA base composition is 73 mol% G + C. Comparison of 16S ribosomal DNA sequences showed that this isolate is a phylogenetic neighbor of Terrabacter tumescens and Intrasporangium calvum. Genotypic, chemotaxonomic, morphological, and physiological characteristics are used to describe a new genus and species, Terracoccus luteus gen. nov., sp. nov. The type strain is strain IMET 7848 (= DSM 44267).