Patchouli alcohol (PA) is a tricyclic sesquiterpene and the dominant bioactive component in oil extracted from the aerial parts of Pogostemon cablin (patchouli). It has been reported to possess diverse health-beneficial activities, including anti-inflammatory, antiobese, and anticancer activities. However, preclinical studies are required to explore the possibility of developing PA as a promising functional and promising drug for the prevention and treatment of human diseases. In this study, we used animal models to examine whether PA shows benefits in inflammation-induced colorectal cancer and obesity-induced diabetes. Apc Min/+ mice for colorectal cancer model were treated PA 0, 25 and 50 mg/kg body weight three times a week for 6 weeks along with 2% dextran sulfate sodium (DSS) in drinking water for 1 week. High-fat diet (HFD)-induced obesity mice were treated with PA 0, 25, and 50 mg/kg bodyweight three times a week for 8 weeks. Oral administration of PA to Apc Min/+ mice treated with DSS significantly suppressed formation and development of tumors in both small and large intestines. In cell culture using Caco-2 human colorectal cancer cells, treatment of culture media with PA suppressed proliferation and induced G1-phase growth arrest. In a mouse model of HFD-induced obesity, glucose tolerance tests indicated the same orally administered dose of PA to significantly reduce blood glucose. In vitro assays in differentiated C2C12 myocytes further demonstrated PA to significantly enhance glucose uptake and increase phosphorylation of 5′ adenosine monophosphate-activated protein kinase and protein kinase B. This study demonstrates that PA might possess health beneficial effects on colorectal cancer and obesity-induced diabetes.