A group of streptomycete strains was found able to utilise a wide range of structurally diverse phosphonates as a sole phosphorus source. No relation could be observed between ability to synthesise compounds containing a direct carbon-to-phosphorus (C-P) bond and biodegradative potential towards phosphonates in the strains studied. Streptomyces morookaensis DSM 40565 could degrade 2-amino-4-phosphonobutyrate as a sole nitrogen and phosphorus source in a stereoselective-like manner. This result suggests the existence of a new metabolic pathway for C-P bond breakage.