Bacteria isolate N3 was selected from 10 bacteria isolates judging from its ability to inhibit growth of colletotrichum gloeosporioides and curvularia lunata which caused anthracnose and flower rusty spot diseases in orchid, respectively. Variation of culture media, pH, and temperature for its cultivation revealed that the optimal conditions for producing active compound against C.gloeosporioides were; culture in TSB medium at pH 7, 37°C for 18 hr, and against C.lunata were culture in TSB medium at pH 6, 37°C for 21 hr. Active compound from culture filtrate showed stability to pH in the range of 2-10 and temperature from 20-12°C for 20 minutes. Proteins were fractionated from culture filtrate with 0-40% and 40-80% saturation of ammonium sulfate were further purified by DEAE Bio-gel A anion exchange chromatography. Result indicated that active compound eluted at 0.6-0.7 M NaCl could inhibit growth of C.lunata and possessed two major bands with M.W. of 63.3 and 39.6 kDa as detected by SDS-PAGE. Purified protein caused abnormality in hyphae germination with abnormal and swollen characteristics. MIC of culture filtrate against C.gloeosporioides and C.lunata were found to be 15.62 and 7.81 μl/ml, respectively, whereas MIC of purified protein against C.lunata was 3.12 μl/ml. Taxonomic study revealed that isolate N3 is a Gram positive rod shape spore forming bacteria. 16S rDNA sequencing showed a 99% similarity to Bacillus subtilis. Results from above studies suggest potential use of B. subtilis N3 and its metabolites for inhibiting growth of orchid pathogenic fungi.