The present work deals with isolation of Streptomyces associated with marine sponges and its bioactive potential. Streptomyces sp. were isolated from the marine sponges Callyspongia diffusa, Mycale mytilorum, Tedania anhelans and Dysidea fragilis. From the initial screening, 94 cultures of Streptomyces were obtained and from these 58 cultures exhibited antagonism against bacteria, 36 strains against fungi and 27 strains exhibited broad spectrum activity against both. The submerged culture extracts of the 58 anti-bacterial isolates were analysed and of these 58 strains, 37 strains showed positive inhibition against Bacillus subtilis, 43 against Staphylococcus aureus, 10 against Vibrio cholerae and 10 against Escherichia coli. The antifungal activities of the 36 strains were also evaluated and 27 strains showed positive inhibition against Aspergillus niger, 23 against Saccharomyces cerevisiae and 16 against Candida albicans. The production of polyene substances from the active extracts was confirmed by UV spectral analysis by the absorbance peaks that ranged from 225 to 262 nm and the TLC (R f values) ranging from 0.40 to 0.78. The results indicate that Streptomyces strains isolated from marine sponges produce potential antibacterial, antifungal and broad spectrum antibiotic compounds.