Abstract: Background: Rohitaka ghrita an ayurvedic formulation is recommended to use in various clinical conditions including jaundice, cirrhosis and cholestasis etc. The study was designed to investigate the hepatoprotective activity of Rohitaka ghrita using paracetamol intoxication model in rats. Wistar albino rats (180-240 g) were employed into the study. Material and Methods: Rohitaka ghrita was administered at the dose of 3.6 and 7.2 g kg-1, p.o. daily. Liver damage was induced by the administering paracetamol (3 g kg-1, p.o.). Silymarin was used as standard. Results: Paracetamol intoxication caused marked increase in SGPT, SGOT, ALP and bilirubin levels. It further impaired the hepatic antioxidant system as evidenced by increased lipid peroxidation; decreased glutathione, catalase levels and also Na+K+ATPase level. Moreover, the liver histopathology revealed central vein dilation, infiltration and fatty degeneration due to PCM intoxication. However, treatment with Rohitaka ghrita (3.6 and 7.2 g kg-1) and silymarin (25 mg kg-1) markedly reversed the effects of PCM in rat. Rohitaka ghrita have a significant hepatoprotective potential against paracetamol induced hepatocellular damage in rats. Conclusion: The present study provides a scientific rationale for its traditional and commercial uses in the management of liver diseases.