Abstract Background Alzheimer is associated with neuronal degeneration, characterized by memory loss and altered behaviour. Many pathological conditions like increased amyloid β (Aβ) plaque formation, and acetylcholinesterase neuroinflammation results in AD. Due to excess of reactive oxygen species (ROS) oxidative stress develops which overexpress Aß in the neuron which modifies the cellular function and thereby activates the neurodegeneration. Method AD was induced by streptozotocin i.e. STZ (3 mg/kg, ICV) day 1st and 3rd day after surgery. Surgery was done on anesthetized rats by the help of stereotaxic apparatus. STZ induced AD rats were treated with ethanolic extracts of Anaphalis neelgerriana leaves (ANLE) (100 and 200 mg/kg, p.o.) for 14 days. Effects of ANLE in Alzheimer diseased rats were assessed for amyloid β peptide (Aβ) and acetylcholinesterase (AchE) Result ANLE significantly (p<0.01) decreases the Aβ1‐40, Aβ1‐42 peptides. Acetylcholinesterase level in the rat’s brain tissue reduced compared to Alzheimer diseased rats. Conclusion The present study reveals that the ANLE produces Anti‐Alzheimer’s effect in Alzheimer diseased rats by decreasing Aβ protein level and Acetylcholinesterase level in the brain tissue.