Phytochemical investigations of methanol extract of rhizome of Iris germanica L. resulted in the isolation of one new compound, 6,6-ditetradecyl-6,7-dihydrooxepin-2(3H)-one (1) and five known compounds, 1-(2-(6′-hydroxy-2′-methylcyclohex-1′-enyloxy)-5-methoxyphenyl)ethanone (2) 4-hydroxy-3-methoxyacetophenone (3), irisolone (4) irisolidone (5) and 2-acetoxy-3,6-dimethoxy-1,4-benzoquinone (6) .The structures of the compounds were determined on the basis of spectroscopic techniques. The antifungal activity of different soluble portions was measured. The hexane soluble portion of the methanol extract showed significant antifungal activity where as the ethyl acetate and chloroform soluble portions showed moderate activity. The methanol extract showed no antifungal activity.