The present study reports effect of critical medium components on antimicrobial compound production from Streptomyces species (A2) isolated from Andaman Coastal area. Antimicrobial activity of strain A2 was confirmed by cross streak method. Culture filtrate of strain A2 showed good activity against gram positive and gram negative bacteria, after 72 hours of fermentation. The ethyl acetate extract of cell free culture filtrate showed 15mm, 16 mm and 13 mm inhibition against S. aureus, B. subtilis and E. coli, respectively. Effect of medium components such as carbon source, nitrogen source, minerals and pH on antimicrobial compound production was tested by classical one factor at a time method using Staphylococcus aureus, Bacillus subtilis and Escherichia coli as test organisms. Of the various variables tested, glucose, glycerol, peptone, soybean meal, sodium chloride, magnesium chloride, manganese chloride, calcium carbonate, and pH 6 and 7 showed significant effect. Further statistical based optimization is needed to prove the effect of interaction of the above variables on antimicrobial compound production from Streptomyces sp A2.