One new cyclic tetrapeptide, cyclo(L-Tyr-L-Pro-L-Phe-trans-4-hydroxy-L-Pro) (1), together with two known cyclodipeptides, cyclo(L-Phe-trans-4-hydroxy-L-Pro) (2) and cyclo(L-Val-L-Tyr) (3), were isolated from the fermentation broth of Streptomyces sp. YIM67005 associated with Inula cappa DC. The planar structure of compound 1 was determined on the basis of spectroscopic techniques, while the absolute configurations of the amino acid residues were determined by the application of the advanced Marfey method. The cytotoxicity and antimicrobial activity of compound 1 were investigated.