A taxonomic study of strain B-98891, which produced an antibiotic effective against powdery mildew of barley, identified it as Streptoverticillium rimofaciens. On agar media the antibiotic, which was named mildiomycin, was only weakly active against most fungi and bacteria tested. However, it inhibited some Mycobacterium and Rhodotorula, and it showed excellent control of powdery mildew of barley plants in greenhouse tests at concentrations between 31.2 and 62.5 ppm. Rhodotorula rubra IFO 0907 was selected as the test organism for in vitro assay of mildiomycin.