The basidiomycete fungus Sparassis crispa produced three antifungal compounds during submerged culture in 2% malt broth. One compound appeared to be sparassol (methyl-2-hydroxy-4-methoxy-6-methylbenzoate), first characterized in 1924. The other two, termed ScI and ScII, exhibited considerably greater antifungal activity than did sparassol against Cladosporium cucumerinum, and were characterized as methyl-2,4-dihydroxy-6-methylbenzoate (methyl orsellinate) and an incompletely determined methyl-dihydroxy-methoxy-methylbenzoate, respectively. Both compounds were found in the decayed wood of trees, where their presence was diagnostic of S. crispa infection. The possible ecological role of these compounds is discussed.