Bacopa is the genus in which the Indian medical herb Brahmi (Bacopa monnieri) is included, which have been reported to have memory enhancing effect. Bacopa monnieri and Bacopa caroliniana are orthologous in nature. In the present study the effects of ethanolic extract of Bacopa caroliniana on behavioural changes of Albino rats in normal and stress induced rats was investigated. The animals were divided into 3 group’s control, low dose (75mg/kg) and high dose (150mg/kg).Rats in each of these groups were sub divided into 2 groups i.e., with stress and without stress. The animals in stress induced group were forced to swim in a cylindrical vessel containing water at room temperature (28˚c) i.e., chronic mild stress. After the treatment period, the rats of each group were trained on Cooks pole climbing apparatus, Elevated plus maze and on Stair case to assess cognitive improving activities. The results showed improvement in learning performance and enhanced memory retention in rats treated with Bacopa caroliniana extract when compared with control group. The in vitro antioxidant activity was carried out to correlate its protective effect against stress, significant inhibition against DPPH & Nitric oxide radicals were observed with extract in dose dependent manner and the results were compared with that of standard Gallic acid.