Lichen is known as the synergy of heterotropic fungi, photosynthetic algae and/or cyanobacteria with plenty of morphological characteristics and universal dispersal. It can be found at most of places due to its large diversification from cold regions to tropic regions such as on stones, arid soils or as symbiont on plants. Discovery of new actinomycetes could be done by processing lichens from various species. This discovery can lead to the production of new antibiotics in market. The objectives of this research are to isolate actinomycetes from lichen collected from trees around Universiti Malaysia Kelantan (UMK) Jeli Campus, to determine the morphological characteristics of the isolated actinomycetes and to investigate the antifungal activity of the isolated actinomycetes. There were few steps that involved in in the research. Firstly, samples of lichens were collected from trees. Secondly, samples were dried. Thirdly, actinomycetes were isolated from lichens. Fourthly, the morphological characteristics of the actinomycetes isolated were identified. Lastly, the antifungal tests were conducted against three fungi which were Aspergillus niger, Fusarium solani and Rhizopus stolonifer. Inhibition zones were recorded. Hence, the total actinomycetes obtained from all of the three isolations (referred as isolation A, B and C) conducted were 106. Among the 106 isolates, only 24 actinomycetes showed distinct morphological characteristics from each other. So, it is concluded that the total actinomycetes obtained from all of the isolations conducted were 24.There were 10 isolates preceded with antifungal tests against A. niger, R. stolonifer, and F. solani. They were A1, A7, C13, C29, C30, C39, C41, C42, C67, and C89. There were three actinomycetes strains that successfully inhibited the growth of R. stolonifer which were C13, C30 and, C39, five actinomycetes strains managed to inhibit the growth of A. niger which were C13, C30, C39, C41 and C67 and none of the isolated actinomycetes strains inhibit the growth of F. solani.