Purpose: the present study was conducted to compare the efficacy of herbal treatment using Aloe Vera in induced lichenoid reaction versus topical steroids. Materials and methods: thirty-six rats were divided into four groups: 1 st group control normal group with no induced oral lesions, 2 nd group (Negative control group) with induced oral lesions but no treatment was used, 3 rd group (Positive control group) treated with triamcinolone acetonide 0.1% paste, in the 4 th group(Aloe vera group) treated with topical Aloe vera gel, rats in the 3 rd and 4 th groups are treated topically for 15 days, samples were taken from the buccal mucosa after the end of the study and sent for histological examination. Results: Histological sections revealed there was a decrease of inflammatory and dysplastic changes of the 3 rd and 4 th groups in comparison to the 2 nd group which received no treatment. Conclusion: Aloe vera might be considered as an accepted alternative treatment option due to their anti-inflammatory, anti-oxidant and anti-neoplastic properties with compared to steroid therapy.