The present invention discloses a novel composition for herbal incense stick (herbal agarbatti) and a process for the preparation of the same which purifies air, cleans and rejuvenates atmosphere and is long lasting, is low on smoke and has a pleasant/good fragrance. The herbal incense stick (herbal agarbatti) comprises natural base materials that provide a soothing fragrance with minimum release of smoke and ash. The herbal incense stick (herbal agarbatti) essentially comprises extracts obtained by a process from flowers of Tagetes erecta (Marigold), leaves and bark of Anacardium occidentale (Kollamaram), latex of Argemone mexicana (Satyanshi), aerial parts of Cassine glauca (Kuntze), leaves of Clerodendrum viscosum (Pumiaya), leaves of Terminalia chebula (Harad) and essential oils from Eucalyptus and peppermint oil. The extracts are mixed with suitable carrier base. The herbal incense stick (herbal agarbatti) has no side effects and is suitable for external application.