Re‐isolation of Pseudomonas tabaci strain NCPPB 2730 from its host, the tobacco plant, led to an activation of the bacteria in order to produce the β‐lactam dipeptide tabtoxin (Wildfire toxin, 1). Incorporation of several 14C‐labelled amino acids as well as L‐[methyl‐13C]methionine, L‐[1,2‐13C2]‐ and L‐[3,4‐13C2]aspartate, rac ‐[1,2‐13C2]glycerol, and [1,2‐13C2]acetate into isotabtoxion (2) demonstrated that the building blocks of tabtoxin (1) are L‐threonine, L‐aspartate, the Me group of L‐methionine and a C2‐unit derived from the C3‐pool (Fig. 3). The Me group of L‐methionine provides the carbonyl C‐atom of the β‐lactam moiety. These findings represent a novel pathway in β‐lactam biosynthesis. Mechanistic aspects with respect to the β‐lactam ring formation are discussed. A biradical 16 is proposed as an intermediate during the cyclization of a N‐formyl‐α‐amino ketone 15.