A herbal formulation for external application having anti-arthritic effect comprising the essential oils of herbs in the ratio mentioned below: Salai Guggul tail (Boswellia serrata) 7.5% to 17.5% v/v, Haridra tail (Curcuma longa) 4% to 9% v/v, Sonth tail (Zingiber officinale) 4% to 9% v/v, Til tail (Sesamum indicum) 69.5% to 79.5% v/v