||This study was piloted to screen anti-inflammatory, anti-arthritic effect of Cobalt (Co) derivative of 3-methoxysalicylaldehyde-2-aminobenzoylhydrazone (AQF). Acute oral toxicity study was conducted according to guidelines OECD-425. Widely accepted carrageenan model was adopted in this study to evaluate Anti-inflammatory effect of Co-AQF. Freunds Complete Adjuvant (FCA) was used for screening anti-arthritic effect and was evaluated by paw edema volume, paw width, paw height, Development of Arthritis (DOA), vascular permeability, release of histamine from blood, Erythrocyte Sedimentation Rate (ESR), Radiographic Analysis and Histopathological assessment. Reference standard Diclofenac Sodium (DS) and Co-AQF have shown significant decrease in all Arthritis evaluating parameters as compared to control group. Pathological changes and histopathological abnormalities which occurred in control group animals were treated with DS and Co-AQF. Hence, based on the results Co-AQF was recognized as anti-arthritic compound and further it can be elucidated at molecular level to establish its potency.