The present invention relates to a novel herbal formulation (DF2112), particularly useful for the management of tissue inflammation. Formulations can be a solution form consisting water decoction of mixture of selected plants in a specific proportion. DF2112 was found safe when tested for its toxicity using acute and subacute toxicity studies. In CFA induced inflammation in rat model, effects of the treatment in rats were monitored by various physiological and haematological parameters, Malondialdehyde (MDA) levels in liver tissue, histopathology and gene expression study of inflamed paw tissue. The obtained results indicated that newly developed formulation DF2112 possess excellent anti-inflammatory activity and is a potent candidate for further drug development as a treatment for inflammation. In this application, we report a novel and effective formulation named as DF2112, for the treatment of tissue inflammation which is developed from a combination formulation of 12 different plants in a specific proportion.