The present invention relates to a pharmaceutically acceptable herbal formulation for treating diseases of the oral cavity is disclosed. The herbal formulation comprising of extracts of at least one part of Spermacoce hispida and Pterospermum acerifolium. The formulation also comprises at least one pharmaceutically acceptable excipients selected from the group consisting of binder, diluent, sweetener, gelling agent, abrasive, foaming agent, flavouring agent and preservative as a carrier. The herbal formulation is formulated in a delivery system in any of the form include paste, gel, solution, gargle, powder or impregnated dental floss. Advantageously, the formulation is used for prevention and/or treatment of dental plaque, plaque induced gingivitis, dental caries, associated diseases of oral cavity or the like.