In the course of a continuing phytochemical survey of Brazilian Velloziaceae, we have examined a sample of Vellozia compacta Martius ex Schultes, popularly known as 'lily of the rocks' [1], a species occurring in the subtropical regions of the South America, especially in the State of Minas Gerais. Hexane extracts of the root and stem furnished, besides lupenone and triacontan-l-01 (identified by comparing their spectral properties with authentic samples), a new diterpene named compactone, the 8-hydroxy-7-oxopimar-15-ene. This new pimarene-type diterpenoid was isolated in 0.1% yield from the dry plant.