Curcumin, a dietary pigment responsible for the yellow color of curry, has been used for thetreatment of inflammatory diseases and exhibits a variety of pharmacological effects such as anti-inflammatory, anti-tumor, anti-oxidant, and anti-viral activity. In order to examine the potency ofthe curcumin in inflammation we used carrageenan induced rat hind paw odema model. Ascurcumin is practically water insoluble, it is hypothesized that pharmacological activity ofcurcumin could be improved by enhancing its water solubility. Water soluble complexes ofcurcumin with cyclodextrins were prepared and screened for greater solubility. Pure curcumin100 mg/kg body weight along with curcumin complexes equivalent to 100 mg/kg body weight ofpure curcumin were tested for the anti-inflammatory activity in Wister rats male rats usingcarrageenan induced hind paw edema model and compared with that of the reference compounddiclofenac sodium at a dose level of 10 mg/kg body weight. Results were statistically analyzedusing ANOVA. All the treatment groups showed statistically significant anti-inflammatoryactivity compared with that of vehicle control and positive control.