The present investigation shows the Micromarphlogical characters of Lawsonia inermis stem.The preliminary phytochemical screening of this studies shows the main chemical constituents of Lawsonia inermis stem are Alkaloids, Carbohydrates, glycosides, fixed oil & fats, flavonoids.This Lawsonia inermis stem is charecterized by the presence of trichomes. Epidermis is the outermost layer and consists of single layer epidermis of quadrangular cells.The outer walls of the cells are cutinised. From some of the cells multicellular, uniseriate hairs called epidermal hairs,(trichomes) are found. Stomata are present. Cortex is well developed with collenchymotous , general cortex , hypodermis & endodermis as starch sheath . Pericycle is represented by semilunar patches of sclerenchyma with intervening masses of parenchyma.Vascular bundles are limited in number arranged in a ring & are wedge or top shaoed and open.Xylem vessels are more in number & arranged in serial order. Medulla and medullary rays are present. From maceration method ethanol extract is more. Soxhlation extraction method shows the plant material that could has no known anti-microbial effect (for example a carrier oil such as sunflower oil) at the testing stages. Phytochemical investigation of stem is done with the ethanol extract. In ethanol extract good quantity of alkaloids, acid ,coumarin ,carbohydrate, glycosides, fixed oils&fats, flavonoids, furonoids, phenols, phytosterols, triterpenoids, tannins, sterols saponins are present.High performenced Liquid chromatography as been analyzed. UV spectroscopy showed best results on stem extrat. Invitro Antioxidant studies as been done. In vivo Anti-inflammatory activity shows the application of LI stem extract resulted in significantly (p<0.01) more % inhibition of swelling of rat paw edema (37.68±0.73%) when compared to marketed gel (28.98±0.68%) at the end of 4h.