Chrysoeriol-4΄-O-α-L-rhamnopyranosyl (1→2)β-D-glucopyranoside. has been isolated from Leucas lavandulaefolia Rees aerial parts and its structure has been determined by UV, IR, 1H NMR and 13C NMR spectroscopic methods. This compound has been isolated for the first time. Ethanol extract from which the flavone glycoside isolated from of aerial parts of plant Leucas lavandulaefolia was tested for anti-inflammatory activity using technique of carageenan induced paw edema in albino rats. The ethanol extract showed significant anti-inflammatory activity compared to the reference standard Diclofinac. Acute toxicity study in mice revealed the nontoxic nature of crude extract.