Osteoporosis is one of the major problems in our aging society. Osteoporosis results in bone fracture in older members of the population, especially in post-menopausal women. In traditional medicine, there are many natural crude drugs that have the potential for use to treat bone diseases. So far, there is no report in literature on anti-osteoporosis (bone forming) activity of Butea species. It was thought to study the anti-osteoporotic activity of this plant. Thus, the present invention provides a pharmaceutical composition from the extracts of Butea monosperma for prevention or treatment of bone disorders, process of preparation and use thereof.