Background: Peptic ulcer is a disease affecting a large number of people, caused due to various reasons including infection with H pylori, consumption of alcohol, NSAIDs and stress. Although not a life-threatening disease, it causes undue distress and discomfort and accounts for increased time off from work thereby leading to manpower and economic losses. In this condition, histamine receptor blockers provide relief. Objectives: Natural remedies for peptic ulcer have not been effectively utilized in clinical set up. In the present study, we evaluated the effect of water extract of Glycyrrhiza Glabra L, commonly known as Liquorice on stressinduced gastric inflammation. Materials & Methods: Liquorice extract was prepared. Male Wistar rats (n=5 in each group) were procured from the central animal house and divided into four groups namely Group 1(control); Group 2 (low dose treatment); Group 3 (high dose treatment) and group 4 (prophylactic). They were housed individually and subjected to restraint stress in PVC pipes for 2 hours daily and their stomach was examined for ulcer in Licorice (oral) fed groups and control. Results: Control group showed the inflammatory changes, ulcer index showed a significant lesion, whereas the animals treated with low dose and high dose showed proportionate decrease in the severity of inflammation as evidenced by the histological features. Fourth group of rats which was treated prophylactically before they were subjected to stress, showed no sign of stress-induced inflammatory changes in the gastric mucosa. Conclusion: The results of this study strongly suggested that the G Glabra extract reduces the inflammation and relieves the ulcers and also it can be used as a prophylactic agent to prevent the peptic ulcer in vulnerable subjects.