The ethanolic extract of Bacopa monnieri Linn. aerial parts were studied far its hepatoprotective effect on $CCl_4-induced$ hepatotoxic rats. The extract was found to decrease significantly $CCl_4-induced$ elevation of SGOT, SGPT, ALP, bilirubin and total cholesterol. But, it increased HDL-cholesterol level and liver weight with respect to $CCl_4$ toxic rats. The extract was also found to decrease significantly the $CCl_4-induced$ elevation of lipid peroxidation and increase the activity of antioxidant enzymes (SOD and CAT) and GSH level in the liver of extract treated rats when compared with $CCl_4$ induced rats. Histopatholosical profiles showed that the extract had significant protective effect against $CCl_4-induced$ liver injury, which corroborates the above findings. Hence it may be possible that the mechanism of hepatoprotection of the extract is due to its antioxidant effect.