We report our investigation of the first transiting planet candidate from the YETI project in the young (˜4 Myr old) open cluster Trumpler 37. The transit-like signal detected in the lightcurve of F8V star 2M21385603+5711345 repeats every 1.364894±0.000015 days, and has a depth of 54.5±0.8 mmag in R. Membership in the cluster is supported by its mean radial velocity and location in the color-magnitude diagram, while the Li diagnostic and proper motion are inconclusive in this regard. Follow-up photometric monitoring and adaptive optics imaging allow us to rule out many possible blend scenarios, but our radial-velocity measurements show it to be an eclipsing single-lined spectroscopic binary with a late-type (mid-M) stellar companion, rather than one of planetary nature. The estimated mass of the companion is 0.15-0.44 M⊙. The search for planets around very young stars such as those targeted by the YETI survey remains of critical importance to understand the early stages of planet formation and evolution. Based in part on data collected at Subaru Telescope, which is operated by the National Astronomical Observatory of Japan. Some of the data presented herein were obtained at the W.M. Keck Observatory, which is operated as a scientific partnership among the California Institute of Technology, the University of California and the National Aeronautics and Space Administration (Proposal ID H215Hr). The Observatory was made possible by the generous financial support of the W.M. Keck Foundation. Based on observations obtained with telescopes of the University Observatory Jena, which is operated by the Astrophysical Institute of the Friedrich-Schiller-University. Based on observations collected at the Centro Astronómico Hispano Alemán (CAHA) at Calar Alto, operated jointly by the Max-Planck Institut für Astronomie and the Instituto de Astrofísica de Andalucía (CSIC, Proposal IDs H10-3.5-015 and H10-2.2-004). Some of the observations reported here were obtained at the MMT Observatory, a joint facility of the Smithsonian Institution and the University of Arizona (Proposal ID 2010c-SAO-5).