The structure of bipolaramide, a new dioxopiperazine isolated from cultures of Bipolaris sorokiniana, is based on ¹H and ¹³C n.m.r. data and X-ray crystallography. Incorporation studies with ¹⁴C-labelled precursors established that bipolaramide is formed from phenylalanine via cyclo-(L-phenylalanyl-L-phenylalanyl).