Azadirachta indica, used widely in India, Nigeria and other parts of the world has been discovered to inhibit paracetamol-induced lipid peroxidation. Twenty four Wistar rats, placed into four groups of six rats each, were used. A (control) was given only normal saline; B was given paracetamol (800mg/kg body weight) to induced hepatotoxicity; C and D were given paracetamol (800mg/kg body weight) and A. indica aqueous leaf extract (400mg and 1000mg/kg body weight respectively). The animals were weighed before and after the experiment. The liver enzymes: AST, ALT and (ALP), serum and liver homogenate levels of MDA, and serum levels of triglycerides, cholesterol, HDL-c, LDL-c, were estimated. There was significant increase in the weights of A and D rats, decrease in B. ALT, AST, and ALP were significantly increased (P<0.05) in B compared to A and significantly decreased in C and D compared to B. The serum and homogenate levels of MDA were significantly increased (P< 0.05) in B compared to A, and significantly decreased in C and D compared to B. Triglycerides, total cholesterol and LDL-c were significantly increased (P<0.05) while HDL-c was decreased in group B. There were significant decreases (P<0.05) in triglycerides, total cholesterol, and LDL-c while HDL-c levels were increased in C and D, compared to B. These findings show that increases in lipid peroxidation, hyperlipidemia and hepatotoxicity found in paracetamol treated rats may have been effectively neutralized on treatment with the extract, suggesting that the extract may exhibits antilipid peroxidation and hypolipidemic potentials. It could also be hepatoprotective.