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Background Recent studies highlighted the biosynthetic potential of nocardiae to produce diverse novel natural products comparable to that of  Streptomyces , thereby making them an attractive source of new drug leads. Many of the 119  Nocardia  validly named species were isolated from natural habitats but little is known about the diversity and the potential of the endophytic nocardiae of root nodule of actinorhizal plants. Results The taxonomic status of an actinobacterium strain, designated ncl2 T , was established in a genome-based polyphasic study. The strain was Gram-stain-positive, produced substrate and aerial hyphae that fragmented into coccoid and rod-like elements and showed chemotaxonomic properties that were also typical of the genus  Nocardia . It formed a distinct branch in the  Nocardia  16S rRNA gene tree and was most closely related to the type strains of  Nocardia nova  (98.6%),  Nocardia jiangxiensis  (98.4%),  Nocardia miyuensis  (97.8%) and  Nocardia vaccinii  (97.7%). A comparison of the draft genome sequence generated for the isolate with the whole genome sequences of its closest phylogenetic neighbours showed that it was most closely related to the  N. jiangxiensis, N. miyuensis  and  N. vaccinii  strains, a result underpinned by average nucleotide identity and digital DNA-DNA hybridization data. Corresponding taxogenomic data, including those from a pan-genome sequence analysis showed that strain ncl2 T  was most closely related to  N. vaccinii  DSM 43285 T . A combination of genomic, genotypic and phenotypic data distinguished these strains from one another. Consequently, it is proposed that strain ncl2 T  (= DSM 110931 T  = CECT 30122 T ) represents a new species within the genus  Nocardia , namely  Nocardia alni  sp. nov. The genomes of the  N. alni  and  N. vaccinii  strains contained 36 and 29 natural product-biosynthetic gene clusters, respectively, many of which were predicted to encode for a broad range of novel specialised products, notably antibiotics. Genome mining of the  N. alni  strain and the type strains of its closest phylogenetic neighbours revealed the presence of genes associated with direct and indirect mechanisms that promote plant growth. The core genomes of these strains mainly consisted of genes involved in amino acid transport and metabolism, energy production and conversion and transcription. Conclusions Our genome-based taxonomic study showed that isolate ncl2 T  formed a new centre of evolutionary variation within the genus  Nocardia.  This novel endophytic strain contained natural product biosynthetic gene clusters predicted to synthesize novel specialised products, notably antibiotics and genes associated with the expression of plant growth promoting compounds.

Genome insights into the pharmaceutical and plant growth promoting features of the novel species Nocardia alni sp. nov