Soft corals are marine invertebrates belonging to the class Anthozoa and are rich in bioactive substances that provide their defense and protection from predators, pathogens, and other unfavorable organisms. Seven soft coral species belonging to the genera Sarcophyton and Sinularia were collected from Omani water and extracted, and their antibacterial and antifungal properties were tested using the agar-disk diffusion method and a MicroResp technique. Potential compounds present in the species were characterized using GC-MS analysis. The results showed that the soft coral species have antibacterial activity against Gram-negative bacteria Pseudomonas putida and Pseudomonas tunicata. The GC-MS analysis found the presence of antibacterial, antifungal, antiviral, anticancer, antioxidant agents, agrochemicals, and medicinal chemicals. Three novel compounds were found in a Sarcophyton sp. In addition, the compound Andrographolide found in a Sarcophyton sp. has been recently studied as an antiviral agent against SAR-CoV-2. Moreover, the compound Decosane found in Sinularia sp. has been used as an anti-parasitic agent against the female Anopheles mosquito to treat malaria in Pakistan. This study highlighted the importance of Omani soft corals as a source of novel bioactive compounds.