An improved herbal composition having skin whitening and anti-ageing properties comprising Cocos nucifera floret extract in solvents selected from water, alcohol and petroleum ether in amount of 0.1 to 10.0% and conventional additives. Also a process for preparation of a herbal composition comprising extraction of Cocos nucifera florets, hot mixing, emulsification followed by cooling wherein said steps for extraction involve heating the powdered solid of the herb in a solvent, followed by filtration, cooling and centrifugation.