Sarcotragusolides A-D (1-4), four new butenolide sesterterpenes featuring a rare methyl-transferred 6/6/6-tricyclic fused ring system with a butyrolactone moiety, and echinohalimane B (8), an unprecedented monocyclic diterpenoid featuring a 2,7-ring-opened halimane-type skeleton, were isolated from the sponge Sarcotragus sp. A γ-hydroxybutenolide sesterterpene derivative (5), a new scalarane sesterterpene (7), a new subersin-type diterpenoid (10), and two known terpenoids were also isolated and identified. The discovery of sarcotragusolides C and D (3 and 4) with an unprecedented inversion of configuration implied a distinct biosynthetic pathway. The structures of these compounds were elucidated based on their spectroscopic data, single-crystal X-ray diffraction, chemical derivatization, and quantum chemical calculations. Compounds 1a, 1b, and 2 presented modest cytotoxic activities against several human cancer cell lines.