After analyzing the Lauha Bhasma samples qualitatively and quantitatively, in-vivo studies on healthy adult male rabbits were carried out. Randomly selected anaemic rabbits were divided into different groups and three variants of Lauha Bhasma and ferrous sulphate sample were administered to each group. The effect of each formulation was monitored by measuring the haemoglobin (Hb) content spectrophotometrically (cyanomethaemoglobin method). Increase in the haemoglobin content was found to be significant in case of the ayurvedic formulations as compared to the ferrous sulphate sample.