Two aromatic butenolides, aspernolides A and B along with the known metabolites, butyrolactone I, terrein and physcion were isolated from the fermentation broth of a soft coral derived fungus Aspergillus terreus. The structures of these metabolites were assigned on the basis of detailed spectroscopic analysis. The absolute stereochemistry of aspernolides A (1) and B (2) was established by their preparation from the known butyrolactone I. Biogenetically aspernolides A and B must be derived from butyrolactone I, a well known specific inhibitor of cyclin dependent kinase (cdk) from A. terreus. When tested, aspernolide A exhibited mild cytotoxicity against cancer cell lines.