The microorganisms with the antifungal activity against Phytophthora capsici and Colletotrichum acutatum and the plant growth-promoting activity were screened from a forest and natural fields of Gajang-Dong, Sangju-city. One of the isolates, Streptomyces griseofuscus 200401, was selected as a good plant growthpromoting strain in this study. In greenhouse test, the number of leaf, fresh weight, and dry weight of pepper plants, that were grown with treatment of culture suspension or powder containing S. griseofuscus 200401, were higher than those without the bacterial cells. Cultivation of S. griseofuscus 200401 strain for 7 days in a nutrient rich medium produced ammonium chloride up to 0.13 μg/ml in the culture solution of S. griseofuscus. Treatment of the selected strain significantly reduced the severity of the late blight of pepper plants to show the equivalent disease control activity to chemical fungicide. This study suggests that S. griseofuscus 200401 strain could be a potential biological agent with the biocontrol activity and the plant growth-promoting activity.