The present study deals with the inclusion complexation of aceclofenac with beta-cyclodextrin by grinding, microwave and spray-drying techniques. A derivative of beta-cyclodextrin, hydroxypropyl-beta-cyclodextrin, was also subjected to the complexation process with aceclofenac by spray-drying technique. The samples were subjected to in-vitro dissolution studies, fourier transform infra-red spectroscopy, differential scanning calorimetry, nuclear magnetic resonance spectroscopy and x-ray diffraction studies. The in-vitro dissolution of aceclofenac-hydroxypropyl-beta-cyclodextrin complex was faster as compared to the aceclofenac- beta-cyclodextrin complex and aceclofenac alone. Spray-dried aceclofenac-beta-cyclodextrin complex were subjected to anti-inflammatory and analgesic activity and showed significant anti-inflammatory and analgesic activity.