While marine invertebrates are well known as a prolific source of bioactive natural products with varied applications in human health, a critical concern that often arises is the question of a sustainable supply. In part due to such reasons, many research groups have examined marine bacteria from sediment as a source of novel natural products. The microbial communities of marine invertebrates are not well characterized with the exception of the sponges. Over the past few years, we have examined the bacterial communities in selected gorgonian corals using both culture-independent and culture-dependent techniques and such studies have indicated substantial diversity. This presentation will describe the isolation of a bacterium from the coral Pseudopterogorgia elisabethae that produces a family of anti-inflammatory diterpenes and also describe a general method designed to identify natural product producing bacteria.