Chemical analysis of a terrestrial-derived Streptomyces sp. isolated from the rhizosphere of the plant Juniperus excels collected from the Crimean Mountains (Ukraine) yielded a new acid, leopolic acid A (1). Leopolic acid A (1) was identified to possess a rare ureido dipeptide, Phe-CO-Val, attached to a 5-dihydro-3 hydroxy-pyrrole-2-one ring. A detailed spectroscopic and Marfey's analysis led to the structure elucidation of leopolic acid A (1).