Caulerpal A (2) and B (3), two novel sesquiterpenes possessing an uncommon aromatic valerenane-type carbon skeleton, along with one known metabolite, caulerpin (4), have been isolated from the Chinese green alga Caulerpa taxifolia (Vahl) C. Agardh. Their structures and relative stereochemistry were elucidated on the basis of extensive spectroscopic analysis. Compounds 2-4 were evaluated for their inhibitory activity against hPTP1B and the result showed that only compound 4 had a strong PTP1B inhibitory activity with an IC50 value of 3.77 microM.