Sphaeranthus indicus had been widely used for its reported biological activity in indigenous system of medicine. The present investigation was carried out to find the anti-inflammatory effect of ethanolic extract of Sphaeranthus indicus in albino rats. The anti-inflammatory activity was evaluated using acute inflammatory model like carrageenan induced paw edema and chronic inflammatory model like cotton pellet induced granuloma respectively. The ethanolic extract in different doses (100,200, and 400mg/kg, p .o) exhibited dose dependent and significant antiinflammatory activity in acute (carageenan induced hind paw edema, p< 0.05) and chronic (cotton pellet granuloma formation, p<0.05) model of inflammation.