The crystal structure of the title compound, 4b,9b-dihydroxy-7,8-dihydro-4bH-indeno[1,2-b]benzofuran-9,10(6H,9bH)-dione has been determined by single crystal X-ray diffraction. It crystallizes in the monoclinic space group P21/c with Z=4. The FTIR as well as the 1H and 13C NMR spectra of the compound were also recorded and briefly discussed. The compound showed potential antimicrobial activity comparable to that of clinically used antimicrobial agents against selected microorganisms. It has selective and moderate inhibitory activity on butyryl cholinesterase enzyme and could serve as potential lead compound for synthesis of more bioactive derivatives.