Aim – The aim was to compare the efficacy of anti-inflammatory effect of dispersible Piroxicam and dispersible Diclofenac sodium in patients undergoing surgical removal of mandibular third molar. Materials and Methods -The study comprised of thirty patients with bilaterally impacted mandibular third molars. Split mouth study design was employed. The right side served as the Study Side, given tablet Piroxicam 20 mg twice daily and the left side served as the Control Side given Diclofenac sodium 50 mg thrice daily. Subjective and objective evaluation were carried out for pain, swelling, and trismus for the postoperative period at 15 min, 30 min, 45 min, and 1 hour, 1st, 3rd and 7th days. Results -Pain intensity postoperatively at 15 min, 30 min, 45 min,1 hour, 2nd, 3rd and 7th day was less on Study Side than Control Side and the difference in intensity was statistically significant (p<0.001). Also, there was statistically significant reduction in the swelling on 7th day. However, there was no significant difference in trismus seen on both sides over the follow up period. Conclusion - Piroxicam 20 mg given 12 hourly after the surgical removal of impacted mandibular third molars provided a profound degree of analgesia. Piroxicam had superior analgesic effect when compared with Diclofenac.