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Background: The constituents of Lavandula stoechas L. possess antioxidant properties that help in protecting the mucosal cells from oxidative damage and speed up the healing process however, its role in the treatment of ethanol-induced peptic ulcers is not clear. Objectives: We aimed to evaluate the pharmacological potential of Lavandula stoechas L. extracts for anti-ulcer activity, and compare with the standard drugs and to explore novel treatment for peptic ulcer. Methods: We evaluated anti-ulcer potential of plant extract in ethanol-induced ulcer model in rats. Omeprazole and ranitidine were standard drugs. After 5 h of disease induction, animals were sacrificed to get tissues for histological evaluation and ulcer index was measured. While the antimicrobial potential of Lavandula stoechas L. aqueous and methanolic extracts was evaluated against different bacterial stains using standard antibiotic discs. Qualitative phytochemical and GCMS analysis were performed to identify novel constituents. Results: The methanolic extract of Lavandula stoechas L. showed antimicrobial activity against Proteus Mirabilis while the GCMS based analysis revealed the presence of 10 phytochemicals including camphor (antimicrobial agent). The aqueous extract showed significant anti-ulcer activity in ethanol-induced gastric (P < 0.001) and duodenal (P < 0.01) ulcers when compared with controls. Aqueous and methanolic Lavandula stoechas L. extracts showed strong free radical scavenging activity. Conclusion: Lavandula stoechas L. extract possess antimicrobial and anti-ulcer activity in alcohol-induced ulcer model in experimental animals.