Methanolic extract of Terminalia arjuna Roxb of family combretaceae is rich in flavonoids content which are responsible for its antiproliferative activity but these bioactive constituents have poor oral and topical absorption either due to the large molecular weight or poor miscibility with lipids. These poorly soluble herbal extracts can be converted into lipid compatible molecular complexes called phytosomes by binding individual constituents of the herbal extract to phosphatidylcholine. Phytosomes are known to show improved oral and topical absorption followed by enhanced activity as compared to pure herbal extracts. This study was aimed at preparing methanolic extract of Terminalia arjuna bark and Terminalia arjuna bark Extract Phytosome and investigating their antiproliferative activity on human MCF-7 cell line by MTT assay. Comparison of the antiproliferative activity was done with with quercetin and its phytosomes. IC50 of methanolic extract of Terminalia arjuna bark and Terminalia arjuna bark Extract Phytosome against cancer cell lines MCF-7 was found to be 25μg/ml and 15μg/ml respectively whereas that of quercetin and its phytosomes was found to be 2μg/ml and 0.7μg/ml respectively. The results suggests that Terminalia arjuna bark Extract Phytosome & quercetin phytosomes are active pharmacologically and exerts more antiproliferative effect on MCF-7 cells as compared to pure methanolic extract of plant and pure quercetin respectively.