Bioassay-guided fractionation of the diethyl ether fraction of a water extract of Picea schrenkiana needles led to the isolation of the phenolic compound 3,4-dihydroxy- acetophenone (DHAP). The allelopathic effects of DHAP were evaluated under laboratory conditions on P. schrenkiana, rice (Oryza sativa L.), wheat (Triticum aestivum L.), radish (Raphanus sativus L.), lettuce (Latuca sativa L.), cucumber (Cucumis sativus L.) and mung bean (Phaseolus radiatus L.). DHAP significantly inhibited seed germination and seedling growth of P. schrenkiana at concentrations of 2.5 mM and 0.5 mM (p < 0.05). Soil analysis revealed that P. schrenkiana forest soils contained exceptionally high DHAP concentrations (mean = 0.51 ± 0.03 mg/g dry soil), sufficient to inhibit natural P. schrenkiana recruitment. DHAP also exhibited strong allelopathic potential. It significantly inhibited wheat and lettuce seed germination at concentrations of 1 mM and 0.5 mM (p < 0.05). The active compound also completely inhibited root growth of the six test species at high concentrations. Our results suggest a dual role of DHAP, both as an allelochemical and as an autotoxicant. The potential for a single plant needle-leached compound to influence both inter- and intra-specific interactions emphasized the complex effects that plant secondary metabolites might have on plant population and community structure.