I think so but I can't say for sure what it is. Where did you find it ? Is there any kind of story with it ? Was it found where Indian atifacts have been found ? It does look drilled.
If its a real soft sandtone might be natural. If the material is harder it might be something. I have seen natural holes in worn sandstone before. I would have picked it up for further evaluation as well. Looks too cool not to be something but not sure it was done by man. See what all these pro's think. Thanks for sharing.
TnMtns