Artemisia capillaris is a perennial herb that belongs to the family Campositae spp, and has been utilized in Korea for the treatment of abdominal pain, hepatitis, chronic liver disease, and coughing. The anti-inflammatory activity of the ethanol extract of A. capillaris (EtEAC) was investigated in this study. EtEAC did not affect the viability of various cells in a concentration range of $0-200;{mu}g/mL$. The DPPH radical scavenging ability of $10;{mu}g/mL$ of EtEAC was comparable to that of $10;{mu}g/mL$ of catechin. EtEAC exerted an anti-inflammatory effect on the mRNA expression levels of typical inflammatory cytokines (IL-6, $IL1{eta}$) and cyclooxygenase-2 in LPS-stimulated RAW 264.7 cells. Additionally, EtEAC reduced nitric oxide (NO) production via the downregulation of inducible nitric oxide synthase transcription, rather than by scavenging NO. EtEAC exerted its anti-inflammatory effects by suppressing the activation of p38 and ERK at $200;{mu}g/mL$ in LPS-stimulated RAW 264.7 cells.