New drug preparations of natural origin are in need due to the numerous side effects and resistance development through the continuous and uncontrolled use of synthetic drugs. Lichens are reported to have manifold biological activities and in this study, antioxidant, hypolipidemic and cytotoxic potential of Parmelia perlata were assessed. Methanolic extract of P. perlata was prepared and used in DPPH assay, total phenolic content and total antioxidant potential assays. In vitro anti-cholesterol and cytotoxic assay using HCT 116 cell lines were performed. The results revealed that P. perlata contain high phenolic contents and antioxidant potential. Simvastatin was used as standard drug and the extracts demonstrated 48% anti-cholesterol activity. MTT assay using colon cancer cell lines (HCT 116) produced dose dependent cytotoxic effect with an IC50 value of 202.1 µg ml -1 .