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In this study, Nocardia lactamdurans NRRL 3802 was optimized for the first time for production of cephamycin C by using submerged fermentation. The effects of various carbon source, nitrogen source, inoculum size, initial pH of culture medium, minerals and amino acids were investigated for the maximum production of cephamycin C by N. lactamdurans NRRL 3802 in submerged fermentation. Subsequently, selected fermentation parameters were further optimized by Taguchi orthogonal array method and response surface methodology (RSM). Glycerol and yeast extract as carbon and nitrogen sources with initial pH of culture medium of 5.5 and inoculum size of 109 CFU/ml at 28 ± 2 °C after 3 days gave maximum production of 3042.19 ± 62.36 mg/l of cephamycin C as compared to 243.03 ± 9.43 mg/l before optimization. Incorporation of 1,3- diaminopropane at 1.2 % v/v in RSM optimized medium further increased the yield to 3973.20 ± 57.96 mg/l. [ABSTRACT FROM AUTHOR]