Costunolide ($C_{15}H_{20}O_2$) is a sesquiterpene lactone that was isolated from many herbal medicines and it has diverse effects (anti-viral, anti-fungal, and anti-inflammatory) according to previous reports. However, the anti-cancer effects of Costunolide and its mechanism of actions are not well known in estrogen receptor positive breast cancer. In this study, we observed that costunolide suppresses cell growth in estrogen receptor positive MCF-7 breast cancer cells as shown by MTT assay and soft agar colony formation assay. To examine the mechanism by which costunolide inhibits MCF-7 cell growth, we performed FACS analysis. We found that costunolide induced G2/M and S cell cycle arrest, and regulated cycle-related protein expression. In addition, costunolide inhibited ERK signaling pathway and induced autophagy. Therefore, costunolide might be a good and useful chemotherapy agent for estrogen receptor positive breast cancer patients.