The aim of the present study was to evaluate the cytotoxicity and antioxidant activity of 5-(2,4-dimethylbenzyl)pyrrolidin-2-one (DMBPO) extracted from marine Streptomyces VITSVK5 spp. The strain was isolated from sediment samples collected at the Marakkanam coast of Bay of Bengal, India. Systematic screening of isolates for anti-Aspergillus activity resulted in the identification of Streptomyces species designated as Streptomyces VITSVK5 spp. Bioactivity guided extraction and purification yielded a compound 5-(2,4-dimethylbenzyl)pyrrolidin-2-one (DMBPO) and was tested for cytotoxicity and antioxidant activity. The structure of the extracted compound was established by spectroscopic studies and identified as 5-(2,4-dimethylbenzyl)pyrrolidin-2-one (DMBPO). DMBPO exhibited cytotoxic activity on HEP 2 and Hep G2 cell lines with the IC50 value of 2.8 μg/ml and 8.3 μg/ml, respectively, as compared to Vero cell line (22.6). DMBPO showed the hemolytic EC50 value of 288 μg/ml on human erythrocytes. DMBPO treatment showed fewer (31.7%) aberrations, gaps and chromatid breaks as compared to untreated controls (27.8%) of human chromosomes. DMBPO also exhibited significant (44.13% at 5 μg/ml DMBPO) DPPH radical scavenging activity and total antioxidant activity (50.10% at 5 μg/ml DMBPO). The results of this study showed that DMBPO is cytotoxic to cancer cells and possesses antioxidant property.