The present study conducted for Aquilaria agallocha of family Thymelaeaceae for anti-arthritic activity. The ethanolic extract of Aquilaria agallocha (EEAA) leaves and the Aquilaria agallocha oil (AAO) from Heart Wood were studied using in-vitro BSA denaturation method and in-vivo Freund's adjuvant induced arthritic rat model. The inhibition of protein denaturation in-vitro model and paw volume, hematological parameters and radiology of hind legs were studied. EEAA (100, 250 and 500 µg/ml) showed 34.09%, 36.95% and 43.13% inhibition respectively and AAO (100, 250 and 500 µg/ml) showed 23.68%, 48.21% and 56.71% inhibition of protein denaturation respectively and are comparable with Diclofenac (100, 250 and 500 µg/ml) showed 39.58%, 75.83% and 77.51% . In FA Arthritic model EEAA (200 mg/kg and 400 mg/kg) inhibited the increase in paw volume and maximum inhibition were 21.20% and 25.34% respectably on 21th day. The percentage of inhibition was found gradually increasing with the day of treatment. Treated group with AAO (125 mg/kg and 250 mg/kg) inhibited the increase in paw volume and maximum inhibition were 19.78% and 27.88% respectably on 13th and 21th day respectably. Further the hematological and radiological also studies revealed the antiarthritic activity of EEAA and AAO.