In the present work, various aceclofenac-loaded chitosan-egg albumin nanoparticles were prepared through heat coagulation method. These aceclofenac-loaded nanoparticles were characterized by FE-SEM, FTIR, DSC and P-XRD analyses. The in vitro drug release from nanoparticles showed sustained drug release over 8h. Aceclofenac-loaded nanoparticles (prepared using 200mg chitosan, 500 mg egg albumin and 2% (w/v) NaTPP) showed highest drug entrapment (96.32±1.52%), 352.90 nm average particle diameter and -22.10 mV zeta potential, which was used for further preparation of Carbopol 940 gel for transdermal application. The prepared gel exhibited sustained ex vivo permeation of aceclofenac over 8h through excised mouse skin. The in vivo anti-inflammatory activity in carrageenean-induced rats demonstrated comparative higher inhibition of swelling of rat paw edema by the prepared gel compared with that of the marketed aceclofenac gel over 4 h.