We evaluated the ability of the ethylacetate fraction of marine sponge, Cliona celata (ECC), harvested from Korean seaside to regulate the expression of inducible nitric oxide synthase (iNOS) in lipopolysaccharide (LPS)-stimulated murine macrophage-like RAW264.7 cells. ECC dose-dependently inhibited both the expression of iNOS protein and mRNA, resulting in decreased production of nitric oxide (NO), with an IC(50) of 80.5 μg/mL. To investigate action mechanism by which ECC inhibits NO production and iNOS expression, we examined the activation of IκB in LPS-stimulated RAW264.7 cells. ECC clearly inhibited translocation of nuclear factor-κB (NF-κB) p65 subunits from cytosol to nucleus, which correlated with its inhibitory effects on IκB-α phosphorylation and degradation. Furthermore, ECC potently suppressed both the reporter gene expression and DNA-binding activity of NF-κB, which was associated with decreased p65 protein levels in the nucleus. Here, we show for the first time that ECC inhibits NF-κB activation through the inhibition of IκB degradation.