Some strains of Nocardia were found to contain weak activities to phosphorylate aminoglycoside antibiotics in cell-free extracts. Properties of butirosin A resistant mutants derived from N. asteroides IFO 3423 were examined. An increase in their resistance to aminoglycoside antibiotics and their aminoglycoside 3′-phosphotransferase [APh(3′)] contents were shown to be well closely comparable. The findings indicate that APh(3′) of N. asteroides can be a biochemical mechanism in resistance to aminoglycoside antibiotics. The mutant, BUR-38 with the largest increase in APh(3′) was examined for preparation of 3′-phosphate derivatives of aminoglycoside antibiotics. The derivatives were known to be useful intermediates in the chemical transformation of aminoglycoside antibiotics to more potent 3′-deoxy forms against resistant clinically-isolated bacteria. A nonionic detergent, sodium dodecyl sulfate was found to be very effective on 3′-phosphorylation of xylostasin and butirosin A by intact cells.