Herbal medicines have been used all over the world from last many years. Especially in India, there is wide market for herbals. The new approach in herbals as nanotechnology  have a sound future which has a scientific approach to deliver the component in sustained manner which increase the patient compliance and avoid repeated administration. By developing new formulation as nano herbal medicines like nanofiber, nanoparticles, dendrimers, herbal market get good feedback. So many chronic diseases like cancer, wound healing can be cured by nano herbals more effectively as compared to allopathic medicines. The next most important step for herbal formulations is their standardization which establish consistent biological activity, consistent chemical profile or simply a quality assurance program. The article focused on the various techniques employed in preparation, identification and characterization of herbal drugs.