Anti-inflammatory drugs presently available for the treatment of various inflammatory disorders have diverse and undesirable side effects. In recent years; active principles of varied chemical structures have been isolated from plants possessing anti-inflammatory activity. Sulfated polysaccharides present in algae were shown to posses anti-inflammatory properties. Ulva lactuca the green alga available in Tuticorin coast was found to show anti-inflammatory effect as evidenced by the reduction in the inhibition of oedema at the 4th day of the experiment compared with the positive control drug and control. Microscopic examination of the elite organs did not show any alteration compared with the control and reference group. Moreover the hematological parameters were found normal compared with the control. The present study suggests the need for further studies for the development of anti-inflammatory drug of marine origin with proper clinical trials.