The aim of this study was to establish the taxonomic position of the EG76 strain isolated from the water of “El Mellah”lake in “El Kala”, North East of Algeria that showed antifungal activity against Candida albicans resistant to 5 fluorocytosine. The EG76 was isolated from water samples from Gauss agar medium, screened for its antifungal activity on ISP2 agar using double layer and cylinder disc agar methods, the time course of antifungal metabolites production was evaluated against C. albicans IPA549 on three culture broth, ISP1, ISP2 and GYEA, the taxonomic position was determined regarding phenotypic and 16S rDNA sequences features. the EG76 showed a high in vitro activity against S. aureus and C. albicans even against clinical strain resistant to 5-fluorocytosine, its 16S rRNA sequence shared 98% similarity with the Streptomyces malaysiensisATB-11, their phenotypic, biochemical and physiological characters were also compared, the organism appeared to produce high antifungal compounds at 6 days of incubation period of production medium culture. Glucose and peptone were the best carbon sources, the double layer method was found better for antifungal assay than the cylinder and disc diffusion method, EG76 had a broad spectrum activity which represents a potential source of antibiotics with a pharmaceutical interest.