Chemical investigation on the cultures of the fungus Psilocybe merdaria resulted in the first isolation of 10 compounds including two new ones 11,14-dihydroxylneoechinulin E (1) and (S)-4-(4-methylpent-3-en-1-yl)-butyrolactone (2). Their structures were elucidated from the analysis of 1D and 2D NMR and MS data. Among them, compound 7 showed inhibitory activity against AChE with 20% percentage at a concentration of 50 mu g/ml.