The present invention relates to an herbal composition comprising a therapeutically effective amount of the extract of a plant belonging to Calophyllum species as an active ingredient and optionally, a pharmaceutically acceptable carrier. The present invention also relates to herbal composition comprising extract obtained from the plant Calophyllum inophyllum. The invention also relates to a process for the preparation of the extract. The invention also relates to a method for the treatment of metabolic disorders using the said composition. The present invention also relates to a composition comprising a therapeutically effective amount of extract of the plants from Calophyllum species in combination with a known therapeutically active agent for use in the treatment of metabolic disorders.