Allelopathic effect of the essential oil of wild sedge- Cyperus scariosus, it’s polar and non-polar fractions, isolated compound-cyprene and its derivatives: cyprene epoxide and cyprene alcohol were screened for germination studies on chilli (Capsicum annuum L.). Chilli is a vegetable crop in Punjab which is having trouble shooting problem during its germination stage, which leads to the interruption in growth curve of the seedling. Treatment of seeds with oil, its fractions and its derivatives lead to stimulatory effect (approx. 75-100%) in terms of primary root and shoot length with collateral increase in dry and fresh weight of seedlings over control at 20 days. Oil and its polar fraction found to be the most effective in enhancing the root length and shoot length, and acts as potent plant growth regulator at the concentration of 0.5 µg/mL.