An actinomycete strain with a great potential to produce bioactive compounds isolated from a laterite soil was identified as Streptomyces sp. MSL based on 16S rDNA sequence analysis. Secondary metabolites produced by the strain in optimized nutrient broth were extracted and analyzed by chromatographic and spectroscopic techniques. Among the different fractions, four diols, viz., (1) (2R,3R)-2,3-Butanediol, (2) (2R,3S)-2,3-Butanediol, (3) 2,3-dimethyl-2,3-butanediol (Pinacol), and (4) (3R)-1,3-Butanediol exhibited good antimicrobial activity. These compounds inhibited growth of both Gram-positive and Gram-negative bacteria as well as fungi tested. Minimum inhibitory concentration of these compounds was also determined against test micro-organisms in vitro. This is the first report on the occurrence of 2,3-dimethyl-2,3-butanediol (Pinacol) in the genus Streptomyces. This paper also reports the extraction, purification, and antimicrobial spectrum of diols fractionated from the culture filtrate of Streptomyces sp. MSL.