A new pyrrolidine alkaloid named (Z)-3-(4-hydroxybenzylidene)-4-(4-hydroxyphenyl)-1-methylpyrrolidin-2-one was isolated from the ethanol extract of the root barks of Orixa japonica. The structure of the new alkaloid was elucidated on the basis of NMR and MS analysis. The compound exhibited larvicidal activity against the fourth instar larvae of Aedes aegypti (LC50 = 232.09 μg/mL), Anopheles sinensis (LC50 = 49.91 μg/mL), and Culex pipiens pallens (LC50 = 161.10 μg/mL). The new alkaloid also possessed nematicidal activity against Bursaphelenchus xylophilus (LC50 = 391.50 μg/mL) and Meloidogynein congnita (LC50 = 134.51 μg/mL). The results indicate that the crude ethanol extract of O. japonica root barks and its isolated pyrrolidine alkaloid have potential for development into natural larvicides and nematicides. © 2016 by the authors; licensee MDPI, Basel, Switzerland.