Standardization of drugs and formulation is one the essential parameter in today’s drug discovery. Current study includes pharmacognostic study of a polyherbal formulation which comprise of six crude powdered drugs i.e. Acacia catechu, Phyllanthus embellica, Pterocarpus marsupium, Salacia reticulata, Tinospora cordifolia and Vetiveria zizanioides, which is used locally for diabetes. Morphological, microscopical and physico-chemical studies were done to standardize the plant ingredients and also for the formulation. Current study includes lycopodium spore method, which is one of the most important methods for standardization of individual powder drug and powdered formulations. When combined with various parameters like linearity, specificity, precision, repeatability and accuracy, the method become a powerful tool to uncover and check even a very small amount of adulteration in a large extent. Mean value for the identifying characters in the mixture was near to one-sixth as compared to the drug when they were individually studied, vindicating our assumption that after mixing the ratio remained intact in the formulation. Thus, this method can be used for finding the exact ratio of drugs in any formulation in near future. All the result of the study could be useful in setting some diagnostic indices for the identification and preparation of a monograph of the drugs. The developed technique will be useful for standardization of different formulations also.