ABSTRACT Synergistic herbal extract formulation for the management of Diabetes Mellitus and related disorders with dried, powdered, water extract of selected herbs, wherein the said selected herbs are Terminalia chebula, Phyllanthus emblica, Muraya koeenigi, Tinospora cardifolia, Cyprus rotundus and Andrographis paniculata. The herbal extract of the present invention is prepared in atleast in one of the forms such as non-encapsulated powdered form, atleast in capsulated form or atleast in tablet form. The said herbal extract is administered orally along with water. The herbal composition of the present invention has anti-diabetic, anti- adipogenic, anti-inflammatory and anti-oxidant activity and its safety is endorsed by acute oral toxicity test and invitro genetic toxicity studies.