This paper presents a method of both separating audio mixtures into sound sources and identifying the musical instruments of the sources. A statistical tone model of the power spectrogram, called an integrated model, is defined and source separation and instrument identification are carried out on the basis of Bayesian inference. Since, the parameter distributions of the integrated model depend on each instrument, the instrument name is identified by selecting the one that has the maximum relative instrument weight. Experimental results showed correct instrument identification enables precise source separation even when many overtones overlap.