This study investigates the anti-inflammatory and immunomodulatory effects of a Benzimidazole derivative 2-((1H-benzo[d]imiadazol-2-yl) thio)-1-3, 5-diphenyl-1h-pyrazol-1-yl)ethanone (BZ), in both chronic and acute inflammation models. For induction of arthritis, Freund’s Complete Adjuvant was used. After inducing arthritis in rats, three different doses of benzimidazole derivative (25,50 and 100 mg/kg) were given. The treatment started on the 7th day and continued for 3 weeks. Piroxicam was used as the standard drug. On the last day of treatment, the rats were sacrificed. Paw edema and arthritis were determined using digital water plethysmometry and arthritic score index. Various hematological parameters, including red blood cells (RBC), white blood cells (WBC) and hemoglobin (Hb), along with biochemical markers such as aspartate aminotransferase (AST), alanine aminotransferase (ALT), urea and creatinine were also evaluated. The mRNA levels of IL-6 and TNF-α were determined using a quantitative polymerase chain reaction (qPCR). Prostaglandin E2 (PGE2) levels were measured via ELISA. Carrageenan induced paw edema was employed for determining anti-inflammatory activity. Treatment with different doses of Benzimidazole derivative decreased paw edema and decreased arthritic progression. All histopathological parameters were concluded to be decreased after the given treatment. The analysis of qPCR showed decreased levels of Tumour necrosis factor (TNF-α) and Interleukin-6 (IL-6). Enzyme-linked immunosorbent assay (ELISA) demonstrated a decreased level of PGE2 in all groups that were treated with the benzimidazole derivative. Results obtained from all groups treated with the benzimidazole derivative were significantly comparable to those of piroxicam. Treatment groups restored RBC and Hb levels. The Benzimidazole derivative exhibited significant anti-inflammatory and immunomodulatory effects by reducing paw edema, arthritic progression, and inflammatory markers (TNF-α, IL-6, and PGE2), demonstrating potential as a therapeutic agent for inflammatory conditions.