Objective: This study aimed to analyze the essential oil obtained from Litsea balansae Lecomte leaves and investigate its potential as an anti-inflammatory and antioxidant agent. Methods: Fresh L balansae leaves were collected in Quangtri, Vietnam, and subjected to hydro-distillation using a Clevenger-type apparatus to extract the essential oil. The essential oil composition was analyzed using gas chromatography–mass spectrometry (GC-MS). Antioxidant capacity was evaluated through the 2,2-Diphenyl-1-picrylhydrazyl assay, while the inhibition of nitric oxide production was assessed in lipopolysaccharide-activated RAW264.7 cells. Results: GC-MS analysis identified 71 compounds, constituting 99.3% of the essential oil. Key constituents included carvacrol (20.8%), caryophyllene oxide (11.0%), cis-β-guaiene (6.4%), khusimone (3.9%), bicycloelemene (3.7%), and spathulenol (3.7%). The essential oil exhibited a moderate antioxidant effect (half maximal inhibitory concentration [IC50] = 208.37 ± 10.67 µg/mL) and significant anti-inflammatory activity (IC50 = 28.09 ± 1.53 µg/mL). Conclusion: The essential oil derived from L balansae leaves showcases potential as an anti-inflammatory and antioxidant agent, as indicated by its chemical composition and biological activities. These findings suggest promising avenues for further research in the development of therapeutic agents from natural sources.