A series of newer 3-(4'-methoxyphenyl)-5-substituted phenylisoxazoles derivatives have been synthesized by reacting hydroxylamine hydrochloride with chalcones. The chalcones were formed by reacting different aromatic aldehydes with 4-methoxyacetophenone in presence of aqueos potassium hydroxide (KOH). The purity of all the synthesized compounds was checked by recording their melting points and the retention Factors (Rf) values from thin layer chromatography. The structures of the compounds were characterized by recording their infrared (IR) spectra and confirmed by recording their nuclear magnetic resonance (1H NMR) spectra. The acute toxicity study was carried out on all the synthesized compounds and they were screened for their antiinflammatory activity by carrageenan induced rat paw edema method. Anti-inflammatory studies showed statistically significant activity when compared to the control, indomethacin. The two most potent compounds giving good anti-inflammatory activity were further evaluated for their antiulcer activity. The compounds were subjected to quantitative structure activity relationships (QSAR) studies. A close correlation between the observed and the predicted anti-inflammatory activity (Log % inhibition) for the compounds indicated the development of the best QSAR model. The synthesized compounds were found to be non-ulcerogenic as compared to the standard, aspirin.