We investigated the function and molecular mechanisms of 2-desoxy-4β-propylcarbamate-pulchellin (P-13), a sesquiterpene lactone derivative of 2-desoxy-4-epi-pulchellin from the traditional Chinese medicinal herb Carpesium abrotanoides L, in regulating STAT3 signaling and cancer cell growth. We found that P-13 inhibited the IL-6-induced, as well as the constitutive, STAT3 activation in a dose and time-dependent manner. In vitro kinase activity analyses demonstrated that P-13 directly inhibited JAK2 kinase activity. The inhibitory effects of P-13 on JAK2/STAT3 signaling could be blocked by reducing agents dithiothreitol (DTT) or glutathione (GSH), indicating an involvement of the thiol-reactive α-β unsaturated carbonyl group in P-13. Further analyses with mass spectrograph, as well as molecular docking, revealed that P-13 covalently bound with the C452 in the SH2 domain of JAK2. Furthermore, P-13 inhibited growth and induced death of many cancer cell lines, particularly those expressing constitutively activated STAT3. It also inhibited in vivo growth of human cancer cell xenografts. Taken together, these findings revealed P-13 as a novel covalent inhibitor of JAK2, uncovered a new mechanism to inhibit JAK2, and provided a promising anti-cancer drug candidate.