The irreversible and continuing loss of neurons is the fundamental cause of neurodegenerative diseases (ND). The most common age-associated neurodegenerative condition is Alzheimer's disease (AD), and its etiology appears to have a chronic inflammatory component. The stimulation, proliferation, phenotypic and functional modifications in glia can be brought on by a variety of stresses in the central nervous system (CNS), and these modifications are modulated by anti-neuroinflammatory substances. This study evaluated the anti-neuroinflammatory and pro-neurogenic effects of N-(2-hydroxy phenyl) acetamide (NA-2) in primary neuronal and glial co-cultures using in vitro model of neuroinflammation associated with neurodegenerative disorders. Neurons and glial cells were co-cultured from the pup’s brain of wistar rats. In primary neuronal/glial co-culture, the MTT assay was performed to assess the pro-neurogenic and antineuroinflammatory properties of test compound. The proportion of viable cells were increased at 50μM dose of NA-2 as compared to the untreated control, which shows its proneurogenic potential at low dose. Lipopolysaccharide (LPS) was used to induce the neuroinflammatory response. It was observed that treatment group at 50μM of NA-2 followed by LPS stimulation demonstrated anti-neuroinflammatory potential when compared to the LPS treated cells. Furthermore, it reduces oxidative stress induced by H2O2 and significantly inhibits the generation of ROS. These results demonstrated that NA-2 possesses antineuroinflammatory and neuroprotective properties in in-vitro model of neuroinflammation and could potentially be an important neuroimmunomodulatory compound in the management of neurodegenerative disorders.