A new peptide, L-O-Lac-L-Val-D-O-Hiv-D-Val (1), consisting of D-valine, L-valine, L-lactic acid, and 3-D-hydroxyisovaleric acid, was isolated from the culture of the marine sediment derived Streptomyces bacillaris. The planar structure of compound 1 was assigned by 1D, 2D NMR and mass spectroscopic analyses. Following acid and base hydrolysis, the absolute configuration of the valine residues in 1 were determined by application of the advanced Marfey's method and the absolute configurations of hydroxy acids units were determined by a HPLC method based on Mosher's reagents.