The goal of the current investigation was to prepare PEGylated Lipova E120 liposomes loaded with celecoxib for theeffective treatment of rheumatoid arthritis (RA). PEGylated liposomes were prepared and were characterized using techniquessuch as particle size distribution, polydispersity index (PDI), zeta potential, encapsulation efficiency and in-vitrorelease, in-vivo and stability studies. The morphological study was characterized by scanning electron microscopy andtransmission electron microscopy. To determine the interaction between drug and polymer Fourier transform infrared,Raman, thermogravimetric analysis and differential scanning calorimetry studies were performed. Results show that formulationF6 was optimized with a particle size of 92.12 ± 1.7 nm, a PDI of 0.278 ± 0.22, a zeta potential of

- 40.8 ± 1.7 mV with a maximum encapsulation of 96.6 ± 0.05% of drug in the PEGylated liposomes. The optimizedformulation shows a maximum release of drug i.e. 94.45 ± 1.13% in 72 h. Tail immersion assay shows that the optimizedformulation F6 significantly increases the reaction time and carrageenan-induced assay shows that the optimized formulationinhibits the increase in paw edema thus providing a pain relief treatment in RA. These results suggest that thePEGylated liposomes provide a sustained release of celecoxib and helps in effective treatment of RA.