Artemisia aucheri Boiss. is a shrub from Asteraceae family has been widespread in Iran. In traditional medicine, A. aucheri is used for its astringent, disinfectant, antimicrobial and antiparasitic properties. The aim of this study was to evaluate the chemical composition and antimicrobial activity of essential oil from aerial parts of A. aucheri against different microorganisms including Gram positive, Gram negative bacteria, filamentous fungi and yeast by disc diffusion and micro broth dilution assays. The antioxidant activity of A. aucheri essential oil was evaluated by DPPH free radical scavenging system. Fifty five components were identified by GC and GC/MS analysis and quantified from the essential oil of A. aucheri, representing 98% of total oil. The major components were geranyl acetate (17.2%), E-citral (17.1%), linalool (12.7%), geraniol (10.7%), Z-citral (10.5%). The antimicrobial results showed that Pseudomonas aeruginosa was resistant to the oil and Staphylococcus aureus and Candida albicans showed the best sensitivity to the oil. The A. aucheri has powerful antioxidant activity than that of Trolox. Some investigations were be done for evaluating the efficacy of essential oil.