The main objective of the present study was to develop and evaluate anti-diabetic potential of polyherbal formulation (PHF) using Nigella sativa, Cinnamomumverum, Allium sativum, Zingiberofficinale, Curcuma longa and Trigonellafoenumgraecum for management of diabetes. The PHF was investigated by advanced analytical techniques. The proximate analysis of PHF revealed all parameters were within the limits indicating no adulteration and contamination. In addition, gas chromatography-mass spectrometry (GC-MS) and Fourier transform-infrared (FT- IR) spectroscopy analysis showed the presence of bio-active phytochemicals including phenolic compounds, antioxidants, anti-inflammatory and anti-diabetic constituents that are good therapeutic potential for prevention and management of diabetes. The efficacy of PHF was evaluated by dividing into four groups (PHF 1.5 g, PHF 3.0 g, metformin 500 mg and placebo) of newly diagnosed type 2 diabetic patients for 90 consecutive days and monitored on a monthly basis. PHF 3.0 g dose showed a significantly higher anti-diabetic effect as compared to PHF 1.5 g while comparable results in relation to metformin 500 mg. The phytochemical characterization of PHF will ensure its quality and safety. Moreover, the anti-diabetic efficacy of PHF is comparable with anti-diabetic efficacy of metformin. PHF has the potential to achieve glycemic control in type 2 diabetic patients with a diabetic diet prescribed.