The inhibitory effects of various carbohydrates on cholesterol esterase (CHE) biosynthesis were Investigated in a CHE-producing Streptomyces lavendulae H646-SY2. A marked decrease in CHE production and preferential utilization of glucose were observed when glucose was added to a medium containing palmitic acid as the sole carbon source and an inducer of CHE production. This catabolite repression was also caused by other carbohydrates Such as sucrose, glycerol, galactose and arabinose. Sucrose, however, did not inhibit the utilization of palmitic acid by the strain, suggesting that the mechanism of the catabolite repression by sucrose is different from that by glucose.