The effect of quercetin was assessed in rats induced with complete Freund adjuvant (CFA). Arthritis scores, paw oedema, latency, activities of myeloperoxidase (MPO), ectonucleoside triphosphate diphosphohydrolase (E‐NTPDase), and ectoadenosine deaminase (E‐ADA) in lymphocytes were determined. Furthermore, nucleotide and nucleoside levels as well as the secretion of pro‐ and anti‐inflammatory cytokines were evaluated. Animals were treated with saline and quercetin in doses of 5, 25, and 50 mg/kg for 45 days. The result revealed that quercetin (50 mg/kg) reduced arthritis score and paw oedema, and increased the latency in the thermal hyperalgesia test. Histopathological analysis showed that all the doses of quercetin reduced infiltration of inflammatory cells. MPO activity was increased in the arthritis group; however, quercetin reduced this activity. E‐NTPDase activity was increased in lymphocytes of arthritis rats, and treatment with quercetin reversed this increase. However, E‐ADA activity was reduced in the arthritis group, and treatment with quercetin modulated the activity of this enzyme in arthritis rat groups. Serum adenosine levels were increased in arthritis, and the levels were lowered with quercetin treatment. Quercetin treatment in arthritis groups decreased the elevated levels of cytokines in the arthritis control group. Thus, quercetin demonstrated an anti‐inflammatory effect, and this flavonoid may be a promising natural compound for the treatment of arthritis.Significance of the studyQuercetin may represent a potential therapeutic compound in the treatment of rheumatoid arthritis. Findings from this study indicate that quercetin suppresses swelling and attenuates the underlying inflammatory responses. This is the first report where quercetin was shown to modulate the immune response to arthritis via attenuation of the purinergic system (E‐NTPDase and E‐ADA activities) and the levels of IFN‐gamma and IL‐4. Thus, this work is relevant to basic research and may be translated into clinical practice.