The present innovation relates to the process for the extraction of swertiamarin from Enicostemma axillarae and preparation of its slow release microencapsulated formulation. The extraction method encompasses extraction of shade dried herbage of Enicostemma species with polar solvent(s) followed by clean-up/ partitioning with solvents of increasing polarity. The water fraction is lyophilized to yield crude swertiamarin extract in the free-flowing powder form. Unlike earlier reported extraction methods, no column chromatography was involved in the present method. The microencapsulated formulation of swertiamarin powder concentrate was prepared employing food grade natural polymeric materials.