In this study, we analyzed the anticancer properties of luteolin in N-nitosodiethylamine induced group of rats. We found that the administration of luteolin (0.2mg) for 16 weeks to N-nitosodiethylamine induced rats provides protection against the oxidative stress caused by the carcinogen and thereby prevents hepatocellular carcinogenesis. On administration of the carcinogen, the level of lipid peroxidation elevated markedly, but it was found to be significantly reduced by luteolin administration. Besides, the antioxidant activities in serum were reduced in carcinogen administered animals, which were enhanced to normal level after luteolin treatment to N-nitrosodiethylamine induced group of rats and also this luteolin prevented the elevation of marker enzymes induced by N-nitrosodiethylamine. The bodyweight of the animals decreased and their relative liver weight increased significantly on N-nitrosodiethylamine administration when compared to control group. However, Treatment with luteolin significantly prevented the decrease of the body weight and increase in relative liver weight caused by DEN. In conclusion, these findings indicate that the compound prevent lipid peroxidation, hepatic cell damage and protect the antioxidant system in N-nitrosodiethylamine-induced hepatocellular carcinogenesis.