The present invention relates in general to the treatment and prevention of asthma and pneumonia, and more particularly to an herbal composition for the treatment of asthma and pneumonia in children. The present invention provides a herbal composition, comprising by weight of the herbal composition, 1 % of saffron powder, 3 % of nutmeg powder, 15 % of carom seed flower powder, 10 % of vermillion powder mixed in 71 % of jaggery homogeneously to form a thick paste. The invention further provides a method of manufacturing the herbal composition.