In India more than 70% of the population use herbal drugs for their health. There is a vast experience-based evidence for many of these drugs. There are also a number of Institutes/Universities in India carrying our research on herbal drugs and medicinal plants. Using 'reverse pharmacological' approach, several Institutes carry out basic and clinical research on the potential health benefits of herbal drugs. There are many successful examples in this direction. These herbal drugs and Indian medicinal plants are also rich sources of beneficial compounds including antioxidants and components that can be used in functional foods. Newer approaches utilizing cooperative analysis and fashionable technology in combination with established traditional health principles will yield rich dividends in the near future in improving health, especially among people who do not have access to the use of costlier western systems of medicine.