In the pursuit of new anti-inflammatory drug that should be less toxic and more effective, scientists are working new and alternative approaches to fight inflammatory diseases hence this study was planned with earthworm Eudrilus eugeniae to pave a way in the quest of new anti-inflammatory drug. Two in vivo experiments (carageenan induced paw oedema and cotton pellet induced granuloma pouch) were conducted on experimental rats to demonstrate anti-inflammatory activity of EW extracts. Both of these treatments were found to cause acute and chronic inflammatory reactions. The inflammation was found to be significantly suppressed by pre-treatment with EW extracts. Above anti-inflammatory experiments were additionally used for biochemical demonstration of parameters of oxidative stress markers like reduced glutathione (GSH), thiobarbituric acid reactive substances (TBARS), super oxide dismutase (SOD) and catalase activities. The results have demonstrated that the levels of oxidative stress markers were significantly higher in control than experimental (Indomethecin and EW extract treated) animals indicating significant oxidative stress removing activity. The level of cytokines TNF-α and IL-10 were used to demonstrate as marker of inflammatory and anti-inflammatory conditions in both acute and chronic model of inflammation. Declining levels of TNF-α and increasing trend of IL-10 indicate anti-inflammatory effect of EW extract.