Peptides represent a unique class of pharmaceutical compounds, molecular positioned between small molecules and proteins, yet biochemically and therapeutically unique from both and thus gained wide attention in therapeutics. Immunomodulatory agents have become an important drug category to treat inflammation - since it is the underlying basis of any disease. During a therapeutic treatment involving biologically active peptides under carboxylated osteocalcin (Glu-OC) produced by bone-forming cells osteoblast to reduce amyloidosis in a 5xFAD transgenic (Tg) Alzheimer mouse model, it has been observed that certain immunomodulatory complexes were formed in the brain of mice. The co-localization of “Abeta42” with “osteocalcin” in the brain of 5xFAD mice treated with Glu-OC. The interaction of Abeta42 and Glu-OC was facilitated in situ and tested for immunomodulatory potential. The A-O complex was a non-toxic peptide complex, acting as a potent immunomodulator and anti-inflammatory agent. The results were substantiated in vitro using ConA-induced macrophages and microglial (brain macrophage) cells. Thus, the peptide complex demonstrated immunomodulatory and anti-inflammatory potential in both in situ and in vivo models of inflammation. This complex, with its immunomodulatory and anti-inflammatory potentials, will have commercial application for the treatment of immune and inflammatory disorders. In brief, the present invention relates to the compositions that are effective in the management of inflammatory diseases. The disclosure provides a non-toxic peptide complex comprising Abeta 1-42 and under carboxylated osteocalcin, which displays anti-inflammatory and immunomodulatory functions. The disclosure further provides processes for preparing the compositions.