The ethanolic extract of Bacopa monnieri Linn. aerial parts were studied for its hepatoprotective effect on CCl4-induced hepatotoxic rats. The extract was found to decrease significantly CCl4-induced elevation of SGOT, SGPT, ALP, bilirubin and total cholesterol. But, it increased HDL-cholesterol level and liver weight with respect to CCl4 toxic rats. The extract was also found to decrease significantly the CCl4-induced elevation of lipid peroxidation and increase the activity of antioxidant enzymes (SOD and CAT) and GSH level in the liver of extract treated rats when compared with CCl4 induced rats. Histopathological profiles showed that the extract had significant protective effect against CCl4-induced liver injury, which corroborates the above findings. Hence it may be possible that the mechanism of hepatoprotection of the extract is due to its antioxidant effect.