Solid lipid nanoparticles (SLNs) are considered as a promising nanocarrier for increasing the oral delivery of hydrophobic drugs. The primary objective of the present study is to formulate α-bisabolol loaded SLNs through hot homogenization method and to evaluate its neuroprotective effect in Neuro2A cells. The physico-chemical characterization of α-bisabolol-SLNs through DLS analysis displayed relatively small hydrodynamic size and physically stable zeta-potential value which illustrate that α-bisabolol-SLNs will have enhanced ability to deliver the drug at target site. The PXRD and FTIR analysis evidenced that α-bisabolol-SLNs are amorphous in nature and has good stability. α-bisabolol-SLNs also significantly inhibited AChE and had antioxidant potential. In addition, the α-bisabolol-SLNs protected the Neuro2A cells from Aβ induced neurotoxicity and inhibited Aβ aggregation which was corroborated through thioflavin T assay, fluorescent microscope and FT-IR analysis. Thus, the results of the present study evidenced an improved therapeutic efficacy and bioavailability of α-bisabolol to combat AD.