Whole plant of Cynodon dactylon is traditionally used to treat painful and inflammatory conditions. We have undertaken this study, since no detailed scientific study was available regarding the anti-inflammatory activity of Cynodon dactylon. In the present study, anti-inflammatory activity of aqueous extract of Cynodon dactylon at different doses was studied using carrageenan, serotonin, histamine and dextran induced rat paw edema and cotton pellet method. The study was carried out in three different doses levels of 200, 400 and 600 mg kg-1 orally. The aqueous extract of Cynodon dactylon was found to be safe at all the doses used and there was no mortality up to the dose of 4000 mg kg-1 of extract when administered orally. Cynodon dactylon showed significant anti-inflammatory activities in all models studied. The extract was found to reduce significantly (p<0.001) the formation of edema induced by carrageenan, serotonin, histamine and dextran after 3 and 5 h. Also, it produced maximum 46.40% inhibition in dry weight cotton pellet formation at a dose of 600 mg kg-1 as compared to 46.27% inhibition produced by Indomethacin. The standard drug used was Indomethacin (10 mg kg-1). The preliminary phytochemical screening has revealed the presence of glycosides and flavonoids in the aqueous extract. The presence of flavonoids might be responsible for its anti-inflammatory activity. Results support the traditional use of the plant in the treatment of inflammatory conditions.