The aim of the study was to screen the antagonistic activity of Streptomyces species isolated from marine sediment samples against drug resistant Gram positive cocci. A total of 137 strains were isolated and 15% of the actinomycetes were found to be antibiotic producers. Out of which one potential isolate showed significant inhibitory activity against ATCC strains, Methicillin resistant Staphylococcus aureus (MRSA) and Vancomycin resistant Enterococcus faecalis (VRE) and compared with standard antibiotics. Ethyl acetate extract produced a zone of inhibition of 19 mm against Staphylococcus aureus (ATCC 29213) and 21mm against Enterococcus faecalis (ATCC 29212) and 21mm against the Staphylococcus aureus (MRSA) clinical isolate. Based on Nonomura's key for classification of Streptomyces and Bergey's Manual of Determinative Bacteriology, the isolate was identified as Streptomyces albofaciens. Culturing conditions including temperature, pH, sodium chloride concentration, carbon and nitrogen sources required were optimized. Based on the results of our study Streptomyces albofaciens is found to be a promising source for novel secondary metabolites active against drug resistant pathogens.