The structures of lobohedleolide (1) and (7Z)-lobohedleolide (2), two new cembranolides containing the α,β-unsaturated carboxylic acid system isolated from the Japanese soft coral Lobophytum hedleyi Whitelegge, were elucidated from spectral and chemical evidence, and the absolute configuration of (1) was determined by X-ray analysis of its p-bromophenacyl ester (9). Lobohedleolide (1) showed growth inhibition of the in vitro Hella cells.