This study was conducted to isolate actinomycetes from forest areas of Tamilnadu, to check the antibacterial efficacy of the biomolecules produced by the isolates and their application as antibacterial textile finish. The cross streak plate method and disc diffusion methods were used for screening the actinomycetes isolates for determining antibacterial activity. Chromatographic techniques were used for the partial purification of biomolecules. Partially purified biomolecules were analysed by spectroscopy. Standard procedure was followed for the impregnation of biomolecule on cotton cloth and antibacterial activity studies. Twenty two actinomycetes were isolated from forest soil and screened for antibacterial activity.. On secondary screening the strains KUAJ1 and KUAJ5 exhibited antibacterial activity against the test organisms. KUAJ1 extract produced a maximum zone of inhibition of 21mm against Klebsiella sp and KUAJ5 extract produced a maximum zone of inhibition of 22mm against Bacillus subtilis. The products were partially purified and further analyzed by spectroscopy. On UV – visible spectroscopy maximum absorption spectra of 218 and 240 nm were shown respectively by KUAJ1 and KUAJ5.FTIR results exhibited O-H, C-H and CH_2-S groups in KUAJ1 and N-H, CH3-S groups in KUAJ5 extract. Extracted compounds were coated on cotton fabric and its antibacterial activities were tested. This study proves that the actinomycetes isolated from Tamilnadu forest soil shows antibacterial activites and the active biomolecules produced by isolates could be used for antibacterial textile finish on 100% cotton material