The present study aimed at investigating the chemical composition of essential oil extracted from Brazilian propolis and the susceptibility of Staphylococcus aureus, Staphylococcus epidermides, Streptococcus pyogenes and Escherichia coli to this substance. The essential oil was obtained by steam distillation of propolis and examined by gas chromatography/mass spectrometry (GC/MS). In addition, the agar diffusion method using filter paper disks was employed. Antibacterial activity was measured as equivalent diameters of inhibition zones (in millimeters) after incubation at 37º C for 24 hours. From the 26 identified constituents, β-caryophyllene (12.7%), acetophenone (12.3%) and β-farnesene (9.2%) were found to be major components. New components, namely linalool, methyl hydrocinnamate, ethyl hydrocinnamate, α-ylangene, γ-elemene and valencene, are reported for the first time to be present in propolis essential oil. This oil also exhibited antibacterial activity.