<jats:title>Abstract</jats:title> <jats:p>The chemical constituents and biological activities of the terrestrial <jats:italic>Aspergillus flavipes</jats:italic> MM2 isolated from Egyptian rice hulls are reported. Seven bioactive compounds were obtained, of which one sterol: ergosterol (<jats:bold>1</jats:bold>), four butyrolactones: butyrolactone I (<jats:bold>2</jats:bold>), aspulvinone H (<jats:bold>3</jats:bold>), butyrolactone-V (<jats:bold>6</jats:bold>) and 4,4'-diydroxypulvinone (<jats:bold>7</jats:bold>), along with 6-methylsalicylic acid (<jats:bold>4</jats:bold>) and the cyclopentenone analogue; terrien (<jats:bold>5</jats:bold>). Structures of the isolated compounds were deduced by intensive studies of their 1D & 2D NMR, MS data and comparison with related structures. The strain extract and the isolated compounds (<jats:bold>1</jats:bold>-<jats:bold>7</jats:bold>) were biologically studied against number of microbial strains, and brine shrimp for cytotoxicity. In this article, the taxonomical characterization of <jats:italic>A. flavipes</jats:italic> MM2 along with its upscale fermentation, isolation and structural assignment of the obtained bioactive metabolites, and evaluate their antimicrobial and cytotoxic activities were described.