Background: Atopic dermatitis (AD) is a chronic inflammatory skin condition with limited treatment options. Secondary to good skin care, calcineurin inhibitors such as pimecrolimus are prescribed. It may take several weeks for pimecrolimus to show its effects. Tofacitinib, a Janus kinase (JAK) inhibitor, is being explored as a potential treatment for atopic dermatitis. Objective: This study was undertaken to estimate the efficacy and safety of tofacitinib as a treatment option for atopic dermatitis. Materials and Methods: This was a single center, randomized, open label, two arm, comparative clinical study to evaluate the efficacy, safety and tolerability of tofacitinib lotion 2% w/v versus pimecrolimus cream 1% w/w for the treatment of patients with mild to moderate atopic dermatitis. Results: A total of 30 patients (21 males and 9 females) afflicted with atopic dermatitis were included in the study. The mean and standard deviation of their ages were 44.07 and 12.15 years. The study population was randomly divided into two groups consisting of 15 patients each. 2-way ANOVA showed that there was a significant reduction in the VIGA and EASI scores of patients receiving tofacitinib compared to those receiving pimecrolimus treatment. No significant adverse effect was noted after treatment in either group; minor adverse effects did not require medical intervention.