The essential oil was extracted from the wood of Phoebe bournei (Hemsl.) Yang by a hydrothermal method and then analyzed by gas chromatography-mass spectrometry. The wood oil was comprised mainly of α-copaene (5.44%), α-muurolene (7.32%), δ-cadinene (11.44%), and 1s-calamenene (5.18%). P. bournei wood essential oil exhibited significant antifungal properties against Candida albicans, Trichophyton rubrum, Epidermophyton floccosum, and Microsporum gypseum, and it showed good potential antitumor activity against leukemia cell lines. Although P. bournei (Hemsl.) Yang wood essential oil exhibited weaker activity against the four tested bacteria, it had some effect on promoting glucose uptake by adipocytes.