Production of chitinase by Streptomyces tendae strain TK-VL_333 isolated from laterite soils of the Guntur region, India, was studied in chitin yeast extract salts (CYS) broth. The effect of cultural and nutritional conditions on chitinase productivity of the strain was recorded. The strain elaborated high yields of chitinase when cultured in 1% w/v chitin-supplemented CYS broth containing 0.5% (w/v) xylose and 0.25% (w/v) yeast extract with an initial pH 7 and incubated at temperature 30°C for 72 h. In addition, this strain could utilize fungal biomass as a chitin supplement for chitinase production. The molecular weight of the enzyme purified by ammonium sulphate precipitation (80%) and Sephadex G-100 gel filtration was determined as 45 kDa by SDS-PAGE analysis. The partially purified enzyme was tested for colloidal chitin hydrolysis as well as antifungal activity. It showed a clear zone of colloidal chitin hydrolysis on chitin agar plates, and antifungal activity against Aspergillus niger and Fusarium oxysporum. This is the first report of the optimization and partial purification of chitinase produced by a terrestrial S. tendae.