Keywords: Annulohypoxylon squamulosum, Xylariaceae, secondary metabolites, J-lactone.Endophytes, commonly present in almost all plants, are important sources of natural products with pharmaceutical potential [1,2]. An endophytic fungal strain, named BCRC 34022, was collected from Fu-shan Botanical Garden, I-lan County, Taiwan, during August of 2004. This strain was determined to be Annulohypoxylon squamulosum (family Xylariaceae), based on their cultural and anamorphic data, by Ju [3]. The Xylariaceae is a large family (Xylariales, Ascomycotina) of 36 or more genera. Secondary metabolites produced by representatives from at least one-third of these genera have now been isolated and identified [4]. The secondary metabolites of the genus Annulohypoxylon have received less attention, and only one paper has been reported [4]. To further understand the chemotaxonomy of the genus Annulohypoxylon and to continue searching for novel bioactive metabolites from Xylariaceae, A. squamulosum was chosen for chemical investigation. Careful examination on the above title fungus has resulted in the isolation of one new J-lactone, named 4-hentriacontyl-dihydrofuran-2-one (1), together with nine known constituents (2-10). Compounds 2-9 were obtained for the first time from this species. The structures of these compounds were established by means of spectral experiments. We herein report the isolation and characterization of the new compound.(S)-4-Hentriacontyl-dihydrofuran-2-one (1) was obtained as a colorless powder. The absence of UV absorption showed that the structure has no conjugated chromophore. IR spectrum revealed the J-lactone absorption at 1780 cm -1 . The 1 H NMR spectra of 1 showed one n-hentriacontyl group at G 0.89 (3H, t, J = 7.2 Hz), 1.24-1.50 (58H, br.s), 1.62 (1H, m), and 1.89 (1H, m), which was assigned to H-35, H-6-34, and H-5b/H-5a, respectively. The presence of a J-butyrolactone moiety was suggested by the signals of two CH 2 groups at 1.91 (1H, m, H-3b), 2.35 (1H, m, H-3a), and 2.56 (2H, J = 9.4, 8.9 Hz, H-2) and an oxymethine signal at 4.55 (1H, m, H-4). The n-hentriacontyl group is occupied at C-4 of the J-butyrolactone ring according to the contacts of the signals at 4.55 (H-4) and 1.62, and 1.89 (H-5) in the COSY spectrum. The molecular formula of 1 was established as C 35 H 68 O 2 by ESI-and HR-ESI-MS data, and the existence of a butyrolactone ring was supported by prominent mass fragments at m/z 85 [C 4 H 4 O 2 ] + . The configuration at C-4 was determined to be 4S based on the correlation between the [D] D -20.7q and the known S-configuration for the levorotatory (5S)-3,4-dihydro-5-nonyl-2(5H)-furanone ([D] 25 D -32.2q) [5].