Alumunium Hydroxide acts on the acid present in the stomach by neutralization and forming salt and water. This property of Aluminium hydroxide makes it an antacid for the relief of indigestion. It neutralizes the acid in the stomach and helps to protect the stomach lining from acid irritation.

Alumunium hydroxide is also used to trim down the amount of phosphate ions absorbed by the body from the diet. This helps to reduce the levels of phosphate in the blood which is important in patients with certain kidney diseases.