Peptides that have potent PLA2-inhibitory activity are disclosed. Homology searches of known PLA inhibitory molecules were used to identify and subsequently design potent peptide molecules that can induce neuroprotective as well as anti-inflammatory effect. These peptides were shown to protect against degeneration of joints in transgenic mouse model prone to arthritis. Protection from kainate-induced excitotoxic neuronal injury was also observed using these peptides. These peptides, their analogs and derivatives have potential as neuroprotective and/or anti-inflammatory agents in a clinical setting.