The objective of present investigation was to evaluate gum of Azadirachata indica (Neem) as a binder for pharmaceutical dosage forms. Natural gums are economic, easily available and found useful as tablet binder. No significant work has been reported on neem gum to use it as a tablet binder. Tablets were prepared with neem gum and evaluated for tablet characteristics. Wet granulation technique was used for the preparation of Paracetamol granules. The binder concentrations used in the formulation were 2, 4, 6 & 8% w/w. The evaluation of granules showed 0.63 to 0.75 mm granule size, 28.05 to 30.15° angle of repose and 21.3 to 11.7% fines. Tablets were compressed to hardness at about 6.5 to 6.8 kg/cm2. The evaluation of tablet showed 1.18 to 0.73% friability, 10 to 19 min disintegration time and more than 90% dissolution in 70 min. Tablets at 6% w/w binder concentration showed more optimum results as tablet binder. The neem gum was found to be useful for the preparation of uncoated tablet dosage form.