Diacerein is a new anti-inflammatory analgesics and antipyretic drug, developed specially for the treatment of osteoarthritis. It may be able to modify the course of the disease condition. It directly inhibits IL-1 synthesis and release in vitro and down modulate IL-1 induced activities and have been shown to posses disease modifying effect in experimental models of osteoarthritis and in human subjects with finger joint and knee osteoarthritis. IL-1 plays a fundamental role in osteoarthritis pathophysiology and cartilage destruction and also promotes expression of inducible nitric oxide synthase , increase release of prostaglandin E2, IL-6,IL-8 in human osteoarthritis chondrocytes, which promote joint degradation. Hence, by inhibiting IL-1 diacerein retards all pathological prepossess initiated in osteoarthritir. Diacerein also inhibits IL-1 induced expression of cartilage degrading enzymes. It also enhances expression of TGF BETA-1 and TGF BETA 2 thus favoring matrix synthesis and turnover in articular chondrocytes, thereby accounting for disease modifying property of diacerein It is reported to be safe in comparison to NSAIDs with no documented upper gastrointestinal toxicity like gastric or duodenal ulcer.