Chemical investigation of the sponge Luffariella variabilis collected from the Palm Island group of the Great Barrier Reef, Australia, yielded three new acetylated compounds, 25-acetoxyluffariellin A (1), 25-acetoxyluffariellin B (2), and 25-acetoxyseco-manoalide (3). The structures of the new compounds were elucidated on the basis of interpretation of their spectroscopic data. The known metabolites manoalide (4), seco-manoalide (5), luffariellin A (8), and manoalide monoacetate (10) were also isolated. The new acetylated compounds (1-3) were labile in the sponge tissue when samples were allowed to thaw prior to extraction, but were stable once isolated. Sponge samples that were completely thawed contained only hydroxylated compounds (alcohols). This finding supported the deduction that the acetylated compounds are being enzymatically transformed and/or degraded.