In the present study, p-amino phenol (PAP) and p-amino benzoic acid (PABA) have been modified as lipids palmitoyl p-amino phenol (PPAP) and palmitoyl N - p-amino benzoic acid (N-PPABA) by a simple amide formation reaction of the respective compounds with palmitoyl chloride. On screening PPAP and N-PPABA for pharmacological activity, PPAP (an analogue of paracetamol) has been found to exhibit potent and persistent analgesic and inflammatory activity than paracetamol. Whereas N-PPABA, an amide of p-amino benzoic acid demonstrated novel analgesic, antiinflammatory and antipyretic effects