A novel C18 lipid, containing a 10-membered lactone, mueggelone (1), was isolated from a field-collected sample of Aphanizomenon flos-aquae, together with the known compound lupenyl acetate (3). Both structures were secured using extensive spectroscopic analysis (1D and 2D NMR, MS, IR). Biological activity assessment of both compounds indicated them to have significant inhibitory effects on fish embryo larval development.