Pentacyclic triterpenoids are one of the main functional components inDracocephalum heterophyllum.In this study the optimal process, the fairly simple and accessible extraction and purification of triterpenoids ofD. heterophyllum, was developed by a remaceration method. Remaceration is characterized by minimal loss of biologically active compounds on diffusion, which contributes to the largest depletion of raw materials. The triterpenoid yield was 2.4% under optimal conditions which was enhanced to 98.03% after purification. The triterpenoid profiles and their anticancer and antidiabetic activities were further analyzed. GC-MS analysis of triterpenoidal extract ofD. heterophyllumresulted ursolic acid (71.9%) and oleanolic acid (18.1%) as the major components. Additionally, total purified triterpenoid contents ofD. heterophyllumand its main components were shown to possess significant cytotoxic activity against three human breast cancer cell lines (SK-Br-3, T47D, and MCF-7). The purification of triterpenoids influenced their biological activity. The antidiabetic effect, as measured by inhibition of protein-tyrosine phosphatase (PTP-1B), of the purified fraction of triterpenoids ofD. heterophyllumincreased by five-fold against the enzyme. The results provide important guidance for the industrial application ofD. heterophyllumconfirming the prospect of developing plant extracts into effective drugs and health foods for human applications.