The present invention relates to a novel synergistic herbal extract composition comprising therapeutically effective amounts of extracts of whole plant of Diplocyclos palmatus,leaves of acacia concinna,barks of alstonia scholaris,roots of Argemone mexicana,roots of Asparagus racemosus,leaves of Holarrhena antidysenterica and leaves of Equisetum debile for use in treating and preventing jaundice in a subject in need thereof.The present invention also relates to a process for the preparation of such composition.