Topical gel of lornoxicam and enhancement in its percutaneous permeation from carbopol 974p gel by using various penetration enhancers and comparison with marketed formulation was investigated. Skin delivery of non steroidal anti inflammatory agents offers several advantages over the oral route which is associated with potential side effects. Topical gel of lornoxicam was formulated using triethanolamine (5%) as a solvent, carbopol 974p as a gelling polymer and various penetration enhancers. Lornoxicam gel was evaluated with respect to different physicochemical parameters such as pH, viscosity, spreadability. Permeation study was carried out using freshly excised rat skin. Anti-inflammatory activity of lornoxicam gel was studied in albino Wistar rats and compared with the marketed formulation of . The optimized formulation (G2) containing 2 % of transcutol P as permeation enhancer gave higher drug release than other penetration enhancers. piroxicam (Pirox® gel, 0.5 %w/w) After 6 h, cumulative permeation of lornoxicam through excised rat skin was 212.46 ± 2.1 μg cm–2 with corresponding flux value of 35.41 ± 1.1μg cm–2 h–1. Lornoxicam gel exhibited approximately same anti-inflammatory activity in rats compared to Pirox® gel using the rat paw edema method. Physicochemically stable and non-irritant LRN gel was formulated which could deliver significant amounts of active substance across the skin in vitro and in vivo to elicit the anti-inflammatory activity.