The main objective of the medicinal chemistry is to synthesize the compounds that show promising activity as therapeutic agents with lower toxicity. Benzimidazole derivatives are very useful compound with well-known biological activity. Notable among these are antibacterial, antiviral, antifungal, analgesic, anti-inflammatory and anticancer. In the current research work, the title compounds 5-ethoxy-2-substituted benzimidazole, were synthesized by nitration of phenacetin with concentrated nitric acid it gives N-(2-nitro-5-ethoxyphenyl) acetamide (I). Compound (I) on reduction with alcohol gives 5- ethoxy-2-nitroaniline (II). Reaction of compound (II) with hydrazine hydrate produced 5-ethoxy ortho phenylene diamine (III). The reaction of compounds (III) with substituted acids yielded the corresponding 5-ethoxy-2-substituted benzimidazole (IV). The identification and characterization of the synthesized compounds were carried out by elemental analysis, melting point, thin layer chromatography, FT-IR, NMR and mass data to ascertain that all synthesized compounds were of different chemical nature than the respective parent compound. The compounds were screened for anti-inflammatory activity. The antiinflammatory activities of compounds were done by using Carrageenan induced rat paw edema method. The test compounds IVa, IVd and VIg showed significant anti-inflammatory activity compared with the standard drug Ibuprofen.