An active strain, isolated from soil of Chhattisgarh, India, showed broad-spectrum antimicrobial activity against various pathogenic bacteria and fungi in glucose soybean meal broth. Strain was characterized as Streptomyces hygroscopicus MTCC 4003 based on 16S rRNA sequencing from Microbial Type culture Collection (MTCC), IMTECH, Chandigarh, India. Identification of the purified antimicrobial compound was done by using Infra-red (IR), Mass, Ultraviolet (UV), 1H and 13C nuclear magnetic resonance (NMR) spectra. Plackett-Burman design (PBD) and response surface methodology (RSM) methods were used for the optimization of antibiotic production. Effects of the four medium components soybean meal, glucose, CaCO3 and MgSO4 showed positive effect on antibiotic production, were investigated with the help of PBD. The individual and interaction effects of the selected variables were determined by RSM using central composite design (CCD). Applying statistical design, antibiotic production was improved nearly ten times (412 mg/L) compared with unoptimized production medium (37 mg/L).