Bacopa monnieri is being used in the traditional system of medicine for a variety of ailments. In the present study, the ethanolic extract of Bacopa monnieri aerial parts has been studied for its wound healing activity using various models in rats. Significant increase in wound contraction and skin breaking strength were observed in the excision and incision wound models respectively. There was also significant increase in hydroxyproline content, DNA content, superoxide dismutase activity, catalase activity, glutathione level and decrease in the level of thiobarbituric acid reactive substances in the $12^{th}$ day post wounding tissue of experimental rats in the ethanol extract treated groups with respect to the control group. The effect of the extract was found to be comparable with the standard drug nitrofurazone. From the results it may be concluded that the plant Bacopa monnieri is endowed with significant wound healing activity, thereby justifying its use in the traditional medicine. Saponins may be responsible for the observed wound healing activity.