A‐factor C13H22O4 was shown to be not only the inductor of the biosynthesis of streptomycin in inactive mutants of Streptomyces griseus (Actinomyces streptomycini), but also the potent regulator of differentiation of the cells: it induces the formation of spores in asporogenous strains during their superficial and submerged growth. This is accompanied by morphological modifications in the course of growth of the colonies.