Artemisia pallens Wall. ex DC (Asteraceae) is cultivated for the production of high‐value essential oil from its aerial biomass. In this study, the chemical composition of the root (crop‐residue) essential oil was investigated for the first time, using column‐chromatography, GC‐FID, GC‐MS, LC‐QTOF, and NMR techniques, which led to the identification of twenty constituents, with isolation of (E)‐2‐(2',4'‐hexadiynylidene)‐1,6‐dioxaspiro [4.5]dec‐3‐ene (D6). The D6 was evaluated in vitro for neuroinflammation and acetylcholinesterase inhibitory potential. It showed inhibition of neuroinflammation in a concentration‐dependent manner with significant inhibition of pro‐inflammatory cytokines (TNF‐α and IL‐6) in LPS‐stimulated BV2 microglial cells. D6 did not have any significant effect on the viability of the cells at the therapeutic concentrations. D6 also has shown acetylcholinesterase inhibitory potential (51.90±1.19%) at the concentration of log 106 nM. The results showed that D6 has a potential role in the resolution of neuroinflammation, and its acetylcholinesterase inhibitory potential directs further investigation of its role in the management of Alzheimer’s disease‐related pathogenesis.