In the present study, ethyl acetate extracts of the two marine gorgonians Junceella juncea (JjE), Gorgonella umbraculum (GuE) and a soft coral sarcophyton trocheliophorum (StE) collected from the coasts of Indian Ocean were chemically examined and screened for anti-inflammatory (Evan’s blue method), antibacterial (Bacillus pumilis, Bacillus subtilis and Eschereichia coli and Proteus vulgaris) and antifungal (Candida allricans and Aspergillus niger) activity. The structures of the new compounds isolated from the above mentioned extracts were elucidated by utilizing modern spectral and chemical techniques and were found to be spiroketal steroid, umbraculolide E (briarane diterpenoid) from GuE, Juncins I-M (briarane diterpenoid) from JjE, trocheliophorin (a novel sesquiterpenoid) from StE. All the extracts exhibited potent dose dependent anti-inflammatory activity (30 and 100 mg/kg) in the order JjE > StE > GuE when compared with that of the standard (ibuprofen). All the extracts and some available compounds isolated from them showed significant antibacterial (100 μg/mL) activity. JjE and GuE showed potent antibacterial activity against E. coli. GuE also exhibited highly significant antifungal activity against Candida albicans.