A novel nitrogenous bismacrolide, designated tausalarin C (1), was isolated from the Madagascar sponge Fascaplysinopsis sp. The structure of the compound was elucidated by interpretation of MS and 1D and 2D NMR spectra. It is suggested that tausalarin C is assembled from salarin A (2) and pretaumycin A. The relative configuration of the chiral centers of salarin A was determined by X-ray diffraction. Tausalarin C was found to inhibit proliferation of K562 leukemia cells. A possible biogenesis is discussed.