Artemisia asiatica Nakai has been used for the treatment of infections and inflammatory disorders in traditional Oriental medicine. Previously, an ethanol extract of A. asiatica has been shown to exert antioxidative and antiinflammatory activities and to exhibit protective effects against experimentally induced damage in the gastrointestinal system, liver and pancreas. This study examined whether the ethanol extract of A. asiatica affects inflammatory activation of microglia in the central nervous system, and whether the antiinflammatory activity of A. asiatica is related to neuroprotective effects. The extract of A. asiatica inhibited inflammatory activation of mouse microglial cells as determined by the production of nitric oxide and the expression of inducible nitric oxide synthase and inflammatory cytokine. The extract also protected nerve growth factor-differentiated PC12 cells against microglial cytotoxicity, indicating that the ethanol extract of A. asiatica may be neuroprotective by inhibiting microglial neurotoxicity.