An improved method for isolation and purification of Capsaicin, USP grade, from pungent fruits of Capsicum spp.” The present invention discloses an improved method for extraction, isolation, purification and crystallization of Capsaicin, USP grade, from pungent fruits of Red Chillies [Capsicum spp. (i.e. Capsicum annuum, C. chinense, C. frutescens)], family Solanaceae, with purity >99.5%, HPLC. Capsaicin is a therapeutically and commercially high value compound, used is to cure neuralgia, breaks down to decapeptidesubstance P (DSP), reduces serum cholesterol level, relieve backaches and psoriasis, as well as help to cure strains and sprains. Currently it is in use as nonlethal means of incapacitating a person, especially terrorists or by individuals for self-defense.