Aim of the present study was to evaluate the anticancer effect of orally administered Panchatikta ghrita (Ghee) in 7,12-Dimethylbenz(a)anthracene (DMBA) induced skin carcinogenesis in Swiss albino mice. Skin squamous cell carcinoma was induced at the shaved back of mice by applying DMBA (25 μg in 0.1 ml acetone/ mice) twice weekly for 7 weeks. Tumor formation (100%) was observed in 7 weeks of treatment in DMBA alone. As during radio and chemotherapy body’s natural cells are also killed and low immunity develops, Panchatikta ghrita controls these adverse effects of both and helps better recovery and life styles. Oral administration of Panchatikta ghrita (Ghee) completely prevented the formation of skin tumors, hyperkeratosis, hyperplasia, epidermal erosion, dermal invasion and pearl formation. Results of the present study suggested that Panchatikta ghrita had potent anticancer and chemopreventive effect in DMBA induced skin carcinogenesis. Key words: Panchatikta ghrita, Chemoprevention, Hyperplasia, Epidermal erosion, Hyperkeratosis.