Brazilian ginseng, including Pfaffia townsendii, is used in popular medicine as a natural anti‐inflammatory, tonic, analgesic, and antidiabetic agent. In this study, we investigated the chemical composition and evaluated the antioxidant and anti‐inflammatory activities of the P. townsendii ethanolic extract as well as the major isolated glycoside flavonoids tiliroside and patuletin 3‐O‐β‐D‐glucopyranoside. Chromatographic techniques and spectroscopic analysis were used for the isolation and identification of the major compounds. The antioxidant potential was determined through DPPH and ORAC‐FL assays. The total phenolic content was measured using Folin‐Ciocalteu reagent. The anti‐inflammatory activity was determined based on a model of paw edema and carrageenan‐ (Cg‐) induced pleurisy. We identified three phenolic acids, one carboxylic acid and two flavonoids, patuletin 3‐O‐β‐D‐glucopyranoside, and tiliroside. The ethanol crude extracts, partitions and isolated flavonoids (4581 μmol of Trolox equivalents/g of extract in ORAC and a SC₅₀ of approximately 31.9 μg/mL in the DPPH assay) demonstrated antioxidant activity, and the ethanolic extract as well as isolated flavonoids inhibited paw edema induced by Cg and leukocyte migration in the Cg‐induced pleurisy model. The extract, tiliroside, and patuletin 3‐O‐β‐D‐glucopyranoside obtained from P. townsendii have therapeutic potential against oxidative stress‐related and inflammatory disorders.