<jats:title>Abstract</jats:title><jats:p>Six novel linear peptides, named “rhabdopeptides”, have been identified in the entomopathogenic bacterium <jats:italic>Xenorhabdus nematophila</jats:italic> after the discovery of the corresponding <jats:italic>rdp</jats:italic> gene cluster by using a promoter trap strategy for the detection of insect‐inducible genes. The structures of these rhabdopeptides were deduced from labeling experiments combined with detailed MS analysis. Detailed analysis of an <jats:italic>rdp</jats:italic> mutant revealed that these compounds participate in virulence towards insects and are produced upon bacterial infection of a suitable insect host. Furthermore, two additional rhabdopeptide derivatives produced by <jats:italic>Xenorhabdus cabanillasii</jats:italic> were isolated, these showed activity against insect hemocytes thereby confirming the virulence of this novel class of compounds.