According to this invention, there is provided a novel herbal formulation for the modulation of immune system of hiv infected patients and a process of preparation thereof, comprising (i) preparing a hydromethanolic extract of at least one plant selected from Hippophae rhamnoides, Convolvulus pluricaulis, Withania somnifera, Ocimum sanctum, and Cynodon dactylon at 80-90°C, maintaining the pH of the solution between 6-7 (ii) separating the active compound chromatographically and (iii) subjecting the active compounds to the step of molecular characterization. Further, according to this invention there is provided a process for the preparation of novel plant based Ayurvedic formulation as claimed in claim-I comprising of preparing aqueous adding methanolic extract of Hippophae rhamnoides (Badriphal, Fruits), Convolvulus pluricaulis (Shankhapushpi, whole plant), Withania somnifera (Ashwagandha; Root), Cynodon dactylon (Durva, Whole plant) and Ocimum sanctum (Tulsi - Leaves), by using aqueous and methanol (50:50) at 80°-90°C temperature and maintaining pH of solution between 6-7, separating the active compound chromatographically of each plant material (extract) by using TLC, HPLC and HPTLC separation of the molecules of plant extract by using GCMS, LCMS and 2D NiVlR.