In view of the biological prominence of isatin derivatives and benzimidazole derivatives, it is planned to synthesize new isatin derivatives containing 1-H-benzimidazol-2yl methane-thiol moiety in one side chain at 3rd position. So, some new 2-[1H-benzimidazol-2-ylmethyl) sulfanyl]-N'-[(3Z)-2-oxo-1,2-dihydro-3H-indol-3-ylidene]aceto hydrazides (VIII) have been synthesized as depicted in scheme-I. The intermediates and final compounds were purified and their chemical structures have been confirmed by IR, 1H NMR, Mass and by elemental analysis. Investigation of anti-inflammatory activity was done by carrageenan induced rat hind paw edema method. Among the compounds tested, Compounds (VIIIc) & (VIIId) with methyl group at 5th and 7th positions of the indole ring exhibited maximum activity with percentage inhibition of 68.56 and 61.41. Compounds VIIIi(R=5-COOH), VIIIg(R=5-Cl), VIIIh(R=7-Cl), VIIIb(R=5-Br), VIIIf(R=7-NO2), VIIIe(R=5-NO2) and VIIIa(R=H) were found to be next in the order of antiinflammatory activity.