Antibiotics are secondary metabolites produced by microorganisms. Actinomycetes representrnthe top producer of antibiotics that are widely distributed in the different types of soils. Thernstudy was designed to isolate and screen antibiotic producing actinomycetes on samplesrnobtained from soil and rhizosphere of plants. A total of 30 actinomycetes were isolated fromrnDebrezit, Holeta and Arat Kilo campus. Out of the 30 actinomycetes, 18 (60%) showedrnantimicrobial activities of one of the tested microorganisms of which 9 isolates were selectedrnfor their wide spectrum of antibiotic activities. In this study, isolate AAUBA5 and AAUBA30rnwere found to inhibit all of the test organism, except E.coli ATCC 25922 and the latter wasrnfound to be the most resistant that was only inhibited by 3/18 ( 17 %) of the isolates. Thernisolates were identified and characterized by cultural, morphological, physiological andrnbiochemical characteristics and found to be classified under the genus Streptomycetes. Inrnorder to isolate the active compounds of the extract, fermentation was carried out on ninernisolates and the former was extracted by using ethyl acetate. The antimicrobial activity of thernactive compound of the isolates was studied using Disc Diffusion Assay method and found torninhibit the test microorganisms that could not during the preliminary screening. Finally,rnisolates AAUBA13 was selected for further study based on spectrum activity and inhibitionrnzone diameter in the antimicrobial bioassay. Antimicrobial compound obtained fromrnAAUBA13 isolate was separated and purified with thin layer chromatography (TLC), columnrnchromatography and preparative chromatography. The purified compound found to be activernagainst gram positive bacteria (S.aureus clinical isolate, S.pneumoinae ATCC49619 andrnS.aureus ATCC25923), gram negative bacteria (E.coli ATCC25922, S.typhi ATCC 6539rnShigella boydii clinical isolates and P.aeruginosa ATCC2585) and effective against Candidarnalbicans ATCC62376. The data, in general, showed that the antimicrobial compounds obtainedrnfrom AAUBA13 demonstrate broad spectrum and a remarkable antimicrobial activity againstrnbacterial and Candida albicans ATCC62376. It is also suggested that the other isolates shouldrnbe further processed to fully realize their antibiotic property on different test microorganisms.rnKey words: Actinomycetes; Antibiotics; Antimicrobial bioassay; Antimicrobial compound; Disc Diffusion Assay