Background: To find out a new agent with a high therapeutic index for the treatment of anxiety, an indigenous medicinal plant Eucalyptus terteticornis was screened for its effect on anxiety in experimental animal model.Methods: Thirty six adult Wistar albino rats of both sexes weighing 175-200g were divided into three groups: Group I: DMSO 10% (0.1ml/200g), Group II: hexane extract of leaves of Eucalyptus terteticornis (ETHE) (100mg/kg/body weight), Group III: Diazepam (1mg/kg orally). All test compounds were administered orally for ten days. On tenth day, after one hour of test compounds administration, Wistar rats were taken for elevated plus maze (EPM) and light dark arena (LDA) tests. Statistical comparisons among the groups were performed by One-way analysis of variance (ANOVA) followed by Tukey Krammer test.Results: The results showed that ETHE treated animals (Group II) significantly (p <0.001) increased the time spent in open arms of EPM and in bright arena of LDA on comparing with normal (Group I).Conclusions: The anti-anxiety activity of Eucalyptus terteticornis can be due to its effect on brain neurotransmitters or due to antioxidant property.