Background/Aims: Thalidomide inhibited tumor necrosis factor-α (TNF-α) effectively in many trials. The aim of this study was to investigate the effect of thalidomide on the expression of nuclear factor-ĸB (NF-ĸB), inhibitor of NF-ĸB (IĸB) and TNF-α in a rat model of liver cirrhosis. Methods: Liver cirrhosis was achieved by intraperitoneal injection of carbon tetrachloride thrice weekly, and thalidomide (10 or 100 mg/kg/day) was given daily by intragastric route for 8 weeks. Serum alanine aminotransferase (ALT), aspartate aminotransferase (AST), prealbumin (PA), hyaluronic acid (HA) and laminin (LN), and hydroxyproline (HYP), NF-ĸBp65, α-smooth muscle actin (α-SMA) protein and TNF-α mRNA were studied in the liver, IĸBα and TNF-α protein in the cytoplasm and NF-ĸBp65 protein in the nucleus. Results: Compared with nontreated cirrhotic rats, the histopathology of rats given thalidomide (100 mg/kg) was significantly better. Serum ALT, AST, HA and LN and HYP content in the liver were significantly decreased and PA was elevated (p < 0.01) in this group; the expression of TNF-α mRNA and protein, NF-ĸBp65 and α-SMA were significantly decreased and IĸBα protein was also elevated (p < 0.01). Conclusion: Thalidomide downregulates NF-ĸB-induced TNF-α and activates hepatic stellate cells (HSC) via inhibition of IĸB degradation to prevent liver cirrhosis.