Grave’s disease is the most common cause of hyperthyroidism. Antithyroid drugs are usually well tolerated in majority of patients but serious side effects in the form of allergy, agranulocytosis, aplastic anaemia, vasculitis, hepatitis etc occur in 3 – 12% of treated patients. Carbimazole is extensively used as the drug of choice except in pregnancy, where propylthiouracil is preferred. We report a case of 35 year old female patient with Grave’s disease, who developed cholestatic jaundice following administration of carbimazole for 2 months. Symptoms and laboratory abnormalities subsided on withdrawal of carbimazole and Grave’s thyrotoxicosis was managed with propranolol and propyl-thiouracil.