Capparis zeylanica Linn. a ‘Rasayana’ drug is used for its memory enhancing effects in the traditional Ayurvedic system of medicine. The aim of this study was to evaluate acetylcholinesterase (AChE) inhibitory and memory enhancing activities of Capparis zeylanica Linn. The in-vitro and ex-vivo models of AChE inhibitory activity were used along with Morris water maze test to study the effect on memory in rats. The anticholinesterase effect of methanolic and aqueous extracts of Capparis zeylanica was measured by spectrophotometric Ellman method at 0.1, 0.3, 1.0, 3.0, 10 and 30 mg/ml and brain monoamine oxidase (MAO-A and MAO-B) activity was assessed by Naoi’s method. The results of in-vivo and ex-vivo AChE assay revealed that methanolic and aqueous extracts of Capparis zeylanica inhibit AChE activity, whereas these extracts did not alter MAO activity at any concentration tested as compared to moclobemide and L-deprenyl. The results indicate that Capparis zeylanica improves scopolamine-induced memory deficits through inhibition of AChE activity, and not by direct MAO inhibition.