This research work was executed to determine chemical composition, anti-oxidant and anti-microbial potential of the essential oils extracted from the leaves and stem of Daphne mucronata Royle. From leaves and stem oils fifty-one different constituents were identified through GC/MS examination. The antioxidant potential evaluated through DPPH free radical scavenging activity and %-inhibition of peroxidation in linoleic acid system. The stem's essential oil showed the good antioxidant activity as compared to leaves essential oil. Results of Antimicrobial activity revealed that both stem and leaves oils showed strong activity against Candida albicans with large inhibition zone (22.2 ± 0.01, 18.9 ± 0.20 mm) and lowest MIC values (0.98 ± 0.005, 2.44 ± 0.002 mg/mL) respectively. Leaves essential was also active against Escherichia coli with inhibition zone of 8.88 ± 0.01 mm and MIC values of 11.2 ± 0.40 mg/mL. These results suggested that the plant's essential oils would be a potential cradle for the natural product based antimicrobial as well as antioxidant agents.