The aim of the present study is to evaluate the anti-anemic activity of hydro-alcoholic leaf extract of Aegle marmelos against phenylhydrazine induced hemolytic anemia in rats. Phenylhydrazine (60mg/kg) was administered intraperitoneally for 2 days to induce anemia in rats. The animals were divided in to four groups of 6 animals each. Group I served as normal control, group II as anemic control, group III as reference control administered with Vitamin B12 and group IV animals were treated with 200mg/kg, of hydro-alcoholic leaf extract of Aegle marmelos. All the test drugs were administered once daily for 28 days through oral route. On 29th day blood was withdrawn, through tail puncture under phenobarbitone anesthesia and subjected to the estimation of RBC, Hb and percentage Hematocrit. Both the hydro-alcoholic leaf extract of Aegle marmelos and Vitamin B12 significantly increased the RBC, Hb and Hematocrit levels which conclude that, Aegle marmelos leaf extract exhibits anti-anemic activity.