A strain O4-6, which had pronounced algicidal effects to the harmful algal bloom causing alga Phaeocystis globosa, was isolated from mangrove sediments in the Yunxiao Mangrove National Nature Reserve, Fujian, China. Based on the 16S rRNA gene sequence and morphological characteristics, the isolate was found to be phylogenetically related to the genus Streptomyces and identified as Streptomyces malaysiensis O4-6. Heat stability, pH tolerance, molecular weight range and aqueous solubility were tested to characterize the algicidal compound secreted from O4-6. Results showed that the algicidal activity of this compound was not heat stable and not affected by pH changes. Residue extracted from the supernatant of O4-6 fermentation broth by ethyl acetate, was purified by Sephadex LH-20 column and silica gel column chromatography before further structure determination. Chemical structure of the responsible compound, named NIG355, was illustrated based on quadrupole time-of-flight mass spectrometry (Q-TOF-MS) and nuclear magnetic resonance (NMR) spectra. And this compound showed a stronger algicidal activity compared with other reported algicides. Furthermore, this article represents the first report of an algicide against P. globosa, and the compound may be potentially used as a bio-agent for controlling harmful algal blooms.