Cedrus deodara heart wood has been traditionally used for the treatment of anxiety. The objective of the study was to isolate the compound from the ethanolic extract and to investigate the anxiolytic activity. The isolated compound was characterized by FTIR, 1 H NMR, 13C NMR, and mass spectral technique. The spectral data revealed the structure 3,4-bis(3,4-dimethoxyphenyl) furan-2,5-dione (BDFD). Anxiolytic activity of BDFD was evaluated using elevated plus maze (EPM), Open- field test (OFT) and light–dark model (LDM) in mice. Control mice were orally treated with an equal volume of vehicle (4% gum acacia), and positive control mice were treated with diazepam. In EPM, diazepam and BDFD treated (100 mg/kg) mice exhibited a significant increase in the number of open arm entries and time spent in the open arms (P\0.001). In OFT, like diazepam BDFD treated mice (100 mg/kg) increased the ambulation (P\0.001). In LDM, BDFD treated mice (30 and 100 mg/kg) also showed a significant (P\0.001) increase in the time spent in light arena. In conclusion, the anxiolytic activity of BDFD upon the anxiety models showed a promising result and could be useful for primary medical care.