The strain Streptomyces tendae is well suited for continuous cultivation because of its ability to grow and produce secondary metabolites simultaneously. Continuous culture experiments on defined medium show that growth is limited by nitrogen during steady state for the given medium composition. It is supposed that this also holds for complex medium. Production of antibiotics (several nikkomycins) occurs simultaneously with exponential growth. After switching from batch to continuous operation the fraction of biomass, consisting of pellets, decreases permanently.