Two new polyketide derivatives, huaspenones C and D (1 and 2, resp.), were isolated from the cultures of an endophytic fungus Peyronellaea sp. HS-12, derived from the stems of Huperzia serrata. They share N-bearing furan-3(2H)-one backbone, and 2 has an unprecedented furo[3,2-c]pyridine skeleton. Their structures including the absolute configuration were elucidated by extensive spectroscopic analysis combined with quantum-chemical calculations. (2E,4E)-6-hydroxy-2-methylocta-2,4dienoic acid (3), a key intermediate of the biosynthesis of 1 and 2, was also obtained from the endophyte.Introduction. -Endophytic fungi are microorganisms which spend their life cycle, as a whole or partly, colonizing inter-and/or intra-cellularly inside the healthy tissues of their host plant, typically causing no apparent symptoms of disease [1]. The research on endophytes showed that they are potential sources of novel biologically active secondary metabolites for exploitation in medicine, agriculture, and industry [2 -5]. Furthermore, results from many researches indicated that they could metabolize the same substance as their own host plants [6 -8], rendering them an alternative source of plant secondary metabolites.Huperzia serrata, a Chinese folk medicinal herb, is well-known for the discovery of hupzine A, a potent, highly specific, and reversible inhibitor of acetylcholinesterase [9] [10]. In a previous study, two new furan-3(2H)-one derivatives, huaspenones A and B (4 and 5, resp.), were isolated from Aspergillus sp. XW-12 derived from the stems of H. serrata [11] 1 ). In this work, two novel N-containing furan-3(2H)-one derivatives, 1 and 2, were isolated from the rice culture of an endophytic fungus Peyronellaea sp. HS-12 obtained from the stems of H. serrata, together with a key intermediate of the biosynthesis of 1 and 2, i.e., (2E,4E)-6-hydroxy-2-methylocta-2,4-dienoic acid (3). In addition, two known compounds, andrastin A (4) [13] and huaspenone B (5) [11], were also obtained from the endophytic fungus. Their structures were elucidated by NMR spectroscopy, especially 2D-NMR spectra. The absolute configurations of 1 and 2 were determined by CD analysis, combined with quantum-chemical calculation. To the best of our knowledge, huaspenones C and D (1 and 2, resp.) are the first examples of Nbearing furan-3(2H)-one derivatives in nature, and 2 has an unprecedented furo[3,2c]pyridine skeleton.