Investigation on the chemical constituents of the EtOH extract of the soft coral Lobophytum sarcophytoides, collected off the coast of Dongsha Atoll, Taiwan, has led to the isolation of ten natural compounds 1¡V10, including four new cembrane-type diterpenoids, Sarcophytolins A¡VD (1¡V4) and one new polyhydroxylated steroid 23, 24-Dimethyl-cholesta-5, 16-diene-3£], 20£\-diol (5) along with five know compounds 6¡V10¡CThe structure of compounds 1¡V10 were established by detailed spectral data analysis (IR, MS, 1D, 2D NMR) and by comparison of the spectral data with those of the related known compounds. The relative stereochemistries of compound 5 was further confirmed by X-ray single-crystal diffraction analysis. The cytotoxicity of compounds 1¡V10 against the Daoy (human medulloblastoma), Hep-2 (human laryngeal carcinoma), MCF-7 (human breast adenocarcinoma), CCRF-CEM (human T-cell acute lymphoblastic leukemia), and DLD-1/WiDr (human colon adenocarcinoma) tumor cell lines were determined. Compounds 6, 8, 9, and 10 exhibited moderate cytotoxicities against the tested tumor cells. Furthermore, compounds 1, 2, 4, 6, and 10 were found to show significant activity against the accumulation of the pro-inflammatory iNOS protein at 10 £gM.