The main objective of this study is to isolate actinobacteria has antifungal activity against some dermatophytes, Epidermophyton floccosum, Trichophyton rubrum, Microsporum canis, and Candida albicans, evaluation, and optimization of various cultural and nutritional conditions for maximum antifungal metabolite production. Total 64 actinobacteria were isolated from various localities in Egypt and screened for their antifungal activity against the tested fungi. Out of 64 isolates, the identified Streptomyces canescens MH7 has a good antifungal activity and inhibits the growth of the tested fungi. This isolate was capable of producing glucanase, lipase, and amylase enzymes which are important hydrolytic enzyme in the lysis of the fungal cell wall. Several growth factors were optimized to maximize the production of antifungal metabolites. Streptomyces canescens MH7 had the best antifungal activity in starch casein broth media supplemented with starch as a carbon source, potassium nitrate as a nitrogen source, salinity of 3% (w/v), pH8, incubation temperature at 30°C, incubation for 7 days, and shaking at 180 rpm.