Aims: To evaluate the hepatoprotective activity of Stephania abyssinica (S. abyssinica) and isolate the bioactive constituents. Study Design: The in vivo hepatoprotective activity of the extracts was evaluated by measuring serum levels of biochemical parameters of liver function in carbon tetrachloride (CCl4) treated rats. Place and Duration of Study: A preliminary survey was conducted in the rural areas of Wolaita (Southern part of Ethiopia) from September to December 2015. Pharmacological and phytochemical studies were conducted at the Laboratories of Department of Pharmacology, and Department of Chemistry of Dilla University. Methodology: The in vivo hepatoprotective activity of methanolic extracts of roots and rhizomes of the plant was studied by determining serum levels of the biochemical markers of liver function including glutamate oxaloacetate transaminase (GOT), glutamate pyruvate transaminase (GPT), alkaline phosphatase (ALP), total protein, and bilirubin concentrations before and after treatments with CCl4 and plant extracts. Bioactive principles were isolated by fractionation followed by concentration by preparative Thin Layer Chromatography. The structures of the compounds were elucidated using spectroscopic techniques including 1H NMR, 13CNMR, DEPT-135, 1H-1H COSY, HMQC and HMBC. Results: Administration of CCl4 alone to the rats significantly increased the total bilirubin concentration, GOT, GPT, and ALP (P = 0.05). However, simultaneous injection of oral dose of 200 mg/kg b.wt of the extracts reduced the serum levels of the enzymes by 53.42, 33.62, and 55.00% respectively. When 100 mg/Kg b.wt standard drug Silymarin was used, the decrease in the enzyme levels was by 44.00, 66.84, and 58.36%. Our fractionation experiments led to the identification of new hasubanan type alkaloid named as 6-(3’-hydroxy-4’-methoxycinnamoyl) stephine and the containing fraction displayed moderate hepatoprotective activity. Conclusions: The observed hepatoprotective activities of methanolic extracts of roots and rhizomes of S. abyssinica lend credence to its claimed traditional use against liver diseases.