Paederia foetida is a well known medicinal plant native to India, Bangladesh, Bhutan, Nepal and other south East Asian countries. In India, the shrub is usually found in Himalayas from Dehradun eastwards upto an altitude of 1800 m and also in Assam, Bihar, Orissa, and Bengal. Paederia foetida has been used by various Indian ethnic tribes as food and medicine. Most of its therapeutic properties relate to the gastrointestinal system and suggest its potential utility for gastrointestinal ailments. We report the presence of an acid stable saccharifying amylase in the stems of Paederia foetida, capable of hydrolyzing gelatinized cereal and tuber starch. The plant yielded 450-550 Units of enzyme (amylase) / gm of fresh green stem. The enzyme was stable in the pH range of 3- 8.0 and retained about 80- 85 % of its original activity when incubated in a buffer of pH 3.0 for 3 h at 37 °C. The enzyme displayed optimal activity at pH 4.5 and at a temperature of 45-50 °C. The crude enzyme did not require Ca2+ for enhancing its activity and stability. The acid stable amylase readily hydrolyzed soluble starch, amylopectin, gelatinized cereal flours and tuber starch into maltose and maltodextrins giving a DP (Degree of Polymerization) in the range of 2.8-3.3. The present invention provides a process for the preparation of acid stable saccharifying amylase useful for treatment of indigestion and industrial starch saccharification, which includes blending cut pieces of Paederia foetida stem in an aqueous medium at a pH of 4.0 - 7.0 and a temperature between 0-50 °C, separating the aqueous phase by a known process of filtration, and finally concentrating the extract by a known process of enzyme concentration (ultra- filtration and lyophilization).