The invention provides a novel herbal composition for treatment of arthritis and inflammation. The herbal composition comprises a therapeutically effective combination of extracts obtained from the plants Terminalia chebula, Pluchea lanceolata, Desmodium gangeticum, Vitex negunto and Zingiber officinale, optionally along with pharmaceutically acceptable additives. The invention further comprises methods of making the herbal composition and methods of use for the treatment of arthritis and inflammation.