Hedyotis diffusa Willd (HDW) has long been used as an important component in several Chinese medicine formulae to clinically treat various types of cancer, including colorectal cancer (CRC). Previously, we reported that HDW inhibits CRC growth via the induction of cancer cell apoptosis and the inhibition of tumor angiogenesis. In the present study, to further elucidate the mechanism of HDW-mediated antitumor activity, we investigated the effect of HDW ethanol extract (EEHDW) on the proliferation of HT-29 human colon carcinoma cells. We found that EEHDW reduced HT-29 cell viability and survival in a dose- and time-dependent manner. We also observed that EEHDW treatment blocked the cell cycle, preventing G1 to S progression, and reduced mRNA expression of pro-proliferative PCNA, Cyclin D1 and CDK4, but increased that of anti-proliferative p21. Our findings suggest that Hedyotis diffusa Willd may be an effective treatment for CRC via the suppression of cancer cell proliferation.