Abstract: Novel hypoglycemically active eremophilanolide sesquiterpenes which can be isolated from Psacalium spp., processes for obtaining the novel eremophilanolide sesquiterpenes and methods for their use as hypoglycemic agents, for example, in the treatment of diabetes are described. Further described is the use of epicacalone, cacalone, cacalol or dimaturin as hypoglycemic agents, for example, in the treatment of diabetes. In a preferred embodiment, the hypoglycemically active compounds are obtained from the roots of Psacalium decompositum. As agents for the treatment of diabetes, the hypoglycemically active compounds of the present inventions are useful for treating insulin-dependent (type I) and/or non-insulin-dependent (type II) diabetes.