Poly(epsilon-L-lysine) (epsilon-PL) is a naturally occurring poly(amino acid) characterized by a unique structure linking epsilon-amino and carboxyl groups of L-lysine. Due to its various functions and its biodegradability and non-toxicity, the epsilon-PL polymer has attracted increasing attention in recent years. epsilon-PL is frequently found in various strains of Streptomyces sp. This review gives an up-to-date overview regarding the biosynthesis of epsilon-PL focussing mainly on results obtained from ten newly isolated producer strains, using the two-stage culture method of cell growth and epsilon-PL production cultures. The production of nearly monodispersed epsilon-PL is covered together with the development of epsilon-PL specific hydrolases and the release of synthesized epsilon-PL into the culture broth. From these results, coupled with the termination of polymerization through nucleophilic chain transfer, the biosynthetic mechanism of the polymer is discussed.