In the present study, the alcoholic extract of Terminalia arjuna (TA) and Arjunolic acid (AA) were studied fur its anti-asthmatic and anaphylactic activity. Treatment with TA (250 & 500 mg/kg) and AA (50 & 100 mg/kg) has shown significant protection against mast cell disruption in rats induced by compound 48/80. TA and AA also protected the guinea pig against histamine as well as acetylcholine induced bronchospasm. Both TA & AA exhibited better protection against histamine release than against acetylcholine release. Anti-asthmatic and anaphylactic activity may be possibly due to membrane stabilizing potential and inhibition of antigen induced histamine and acetylcholine release.