The present study investigates the pharmacological properties and safety profile of Bacopa monnieri leaves extract, focusing on its anti-inflammatory and anti-hemolytic potential, as well as its safety for topical application. Phytochemical screening of the extract revealed the presence of key bioactive compounds, including steroids, triterpenoids, saponins, glycosides, flavonoids, and proteins, which contribute to its therapeutic properties. The extract was evaluated for its anti-inflammatory activity through albumin denaturation and heat-induced hemolysis assays, showing concentration-dependent inhibition, with significant effects observed at higher concentrations (46.12% inhibition of albumin denaturation and 42.25% inhibition of hemolysis). Formulation studies demonstrated promising anti-inflammatory effects in a carrageenan-induced rat paw edema model, with the highest reduction in edema observed in Treated Group - 1 (45.20%). Acute toxicity studies on two doses (5 mg/kg and 10 mg/kg) showed no signs of toxicity or mortality over a 21-day period, indicating the safety of the extract for systemic use. Additionally, skin irritation studies revealed no irritation upon application of the extract-based formulations, further supporting its safety profile. These findings highlight the potential of Bacopa monnieri leaves extract as a therapeutic agent for managing inflammation and erythrocyte damage, with favorable safety and efficacy profiles for both systemic and topical applications.