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In order to search for bioactive compounds, we have studied the chemical constituents from the organic extracts of the soft coral Sarcophyton crassocaule. This study had led to the isolation of twenty-six natural cembrane-type diterpenoids, compounds 1¡V26, including eighteen new compounds, sarcocrassocolide A¡VR (1¡V18), along with six know compounds, crassocolide A, B, D, E, L, sarcocrassolide, sinularolide E and 13-acetoxysarcocrassolide (19¡V26). The structures of compounds 1¡V26 were established by detailed spectroscopic data analysis (IR, MS, 1D, 2D NMR) and by comparison of the spectral data with those of the related known compounds. The structures of 8, 9 and 11 were further established by orgamic methods, and the absolute configuration of 1 was determined using a modified Mosher¡¦s method. The cytotoxicity of compounds 1¡V17 and 19¡V21 against the Daoy (human medulloblastoma), HEp2 (human laryngeal carcinoma), MCF-7 (human breast adenocarcinoma), WiDr (human colon adenocarcinoma), DLD-1 (human colon adenocarcinoma), CCRF-CEM (human T-cell acute lymphoblastic leukemia), and HL-60 (human promyelocytic leukemia) tumor cell lines were determined, and structure-activity relationship was presented by statistic method. Compounds 3 and 9 showed significant activity toward the above Daoy, HEp2, MCF7 and WiDr, and compounds 18, 19, 20, 22 and 24 were found to show significant activity toward the above DLD-1, CCRF-CEM and HL-60. Compounds 1¡V26 were shown to exert significant anti-inflammatory activity in LPS-stimulated RAW264.7 macrophage cells. Compounds 9, 17, 19, 22 and 24 also significantly inhibited the accumulation of pro-inflammatory COX-2 protein.