[0057] Abstract [0058] The present invention relates to the use of a water extract of Psidium guajava as an anti-oxidant for stabilizing foods and cosmetics in an amount from about 0.1% to about 5% wt%. The present invention involves the extraction of aqueous extract of Psidium guajava leaf. The aqueous extract is soluble in nature and has advantage over the alcohol based solvents for use in food and cosmetic industries. The antioxidant activity of the Psidium guajava leaf extract is analyzed and compared with Octyl gallate enriched extract, butylated hydroxytoluene, tocopherols, Withania leaf extract, Withania root extract and soya extract. Psidium guajava leaf extract showed higher antioxidant activity compared to other extracts. The extract is mixed with a food and cosmetic and useful in food and cosmetic industries. (FIG 1)