The present invention provides a composition for an anti-diabetic poly herbal drug DIAHEAL-1, comprising of poly herbal preparations wherein the said ingredients are cleaned, processed, dried, pulverized, and sieved, to obtain fine powder which is mixed together and formed into a powder form of drug and a process for preparing anti-diabetic polyherbal preparation. For the preparation of this current product the following processed, herbal plant ingredients such as Nigella sativa, Vernonia anthelmintica, Psoralea corylifolia, Plumbago rosea and Smilax chinensis were used. The above product can be given as a powder, capsule or in a liquid form.