The actinomycete strain SCY114 was isolated from a soil sample of the Fenghuang Mountain in Henan province in China. The strain SCY114 was characterized by smooth grey spores borne in rectiflexibles and spirals chains and usage of all International Streptomyces Project sugars. The cell wall composition was LL-diaminopimelic acid. The melting temperature and guanine plus cytosine content were 81.8℃ and 61.6 mol％, respectively. The level of 16S rDNA gene sequence similarity between strain SCY114 and S. scabies ATCC 49173 was 99.8％. However, the level of 16S~23S rDNA gene sequence similarity between strain SCY114 and S. scabies ATCC 49173 was 87.8％. The values of DNA–DNA relatedness and ΔTm between strain SCY114 and S. scabies ATCC 49173 were 65.2％ and 8.2℃, respectively. In addition, the strain SCY114 did not exhibited pathogenicity to potato plant. Based on the phenotypic and genotypic evidence, strain SCY114 was identified as a novel species of the genus Streptomyces, for which the name Streptomyces scabiei sp. Nov. (CGMCC 5213) is proposed. The strain SCY114 strong inhibited in vitro mycelium growth of Gaeumannomyces graminis var. tritic as well as various other plant pathogenic fungi. Culture broth filter of strain SCY114 was obviously more effective at controlling wheat take-all compared to the Silthiofam, and the disease reduced by 78.2％. An antifungal antibiotic was isolated from fermentation broth of strain SCY114 using series of chromatographic procedures. The molecular formula of the antibiotic was determined to be C28H26N4O3, and on the basis of the NMR data, the antibiotic was confirmed to be staurosporine.