The influence of flowing sodium on creep deformation and rupture behaviour of AISI 316L(N) austenitic stainless steel has been investigated at 873 K over a stress range of 235–305 MPa. The results were compared with those obtained from testing in air environment. The steady state creep rates of the material were not influenced appreciably by the testing environments. The time to onset of tertiary stage of creep deformation was delayed in sodium environment. The creep-rupture lives of the material increased in sodium environment, which became more pronounced at lower applied stresses. The increase in rupture life of the material in flowing sodium was accompanied by an increase in rupture ductility. The creep damage on specimen surface as well as inside the specimen was less in specimen tested in sodium. SEM fractographic investigation revealed predominantly transgranular dimple failure for the specimen tested in sodium, whereas predominantly intergranular creep failure was observed in the air tested specimens. Almost no oxidation was observed in the specimens creep tested in the sodium environment. Absence of oxidation and less creep damage cavitation extended the secondary state in liquid sodium tests and lead to increase in creep rupture life and ductility of the material as compared to in air.