Soft corals are marine invertebrates known to be a prolific source of marine natural products. The genus Xenia is a rich source of bioactive compounds including terpenoids, steroids, saturated, unsaturated and poly unsaturated fatty acids. The water and methanol solvent extracts of soft coral Xenia macrospiculata Gohar, 1940 (X. macrospiculata) were screened for the novel chemical constituents using gas chromatography–mass spectroscopy (GC-MS). In the water extracts, seventeen compounds were identified including monounsaturated fatty acids (35.29%), saturated fatty acids (23.52%) followed by unsaturated fatty acids (5.88%), poly unsaturated fatty acid (5.88%), sesquiterpenoids (5.88%), aromatic compounds (5.88%), Alcohols (5.88%), thio compounds (5.88%) and pleuromutilin derivatives (5.88%). In methanol extract thirty compounds were identified, among which 30% are the poly unsaturated fatty acids (PUFA) followed by monounsaturated fatty acids (13.33%), unsaturated fatty acids (13.33%), saturated fatty acids (13.3%), sesquiterpenoids (10%), alcohols (6.66%), oxygenated heterocyclic compounds (3.33%), steroid (3.33%), organo-fluro compounds (3.33%) and aldehyde derivatives (3.33%). The GC-MS screening of water and methanol extracts of X. macrospiculata revealed the presence of several novel bioactive compounds. Fatty acids are potential nutraceutical compounds playing vital role in preventing the risk of cardiovascular disorders and fatty liver. In addition, these compounds also showed potential antioxidant activity, antimicrobial, antineoplastic, ichthyotoxic, cytotoxic, HIV-inhibitory, anti-inflammatory activity and 5α reductase inhibitory activity.