In traditional system of Indian medicine, the whole plant of Phyllanthus acidus L. Skeels (Euphorbiaceae) has been widely employed for the treatment of variety of disease including inflammation and hepatic ailments. With this view, the present study was undertaken to investigate the hepatoprotective and anti-inflammatory potential of Phyllanthus acidus. The biochemical and histological changes were monitored to evaluate the extent of hepatic toxicity and inflammation. The methanolic extracts of Phyllanthus acidus at a dose of 200 and 400 mg/kg, showed a significant protective activity in rats against thioacetamide and paracetamol induced hepatotoxicity. The same extract also showed promising anti-inflammatory activity. Phytochemical and chromatographic studies revealed the presence of flavonoids and phenolics in the extract, which suggest that these constituents might be associated with exhibited biological properties.