About 75–80% of people worldwide rely mostly on herbal medicine for their primary healthcare needs because of its vast range of biological activities, greater compatibility with the human body, lower risk of side effects, bigger safety margin, and cost-effectiveness. Herbal medicine systems have emphasized a holistic approach to living since the Vedic era. It entails using plants medicinally to treat illnesses and improve overall health and wellness. The medicinal plants constitute 80% of the raw materials used in the herbal medicine preparation. With herbal medicines receiving immense attention in the global market, identification and authentication of the raw material used in herbal formulations requires crucial oversight so that their benefits can reach the consumers. In the contemporary era, technological advancements in the field of molecular biology have led to authentications that are highly efficient and reliable. Such tools are able to detect species-specific genomic differences, thereby enabling researchers to identify and authenticate plant species. Extraction procedures play a significant role in the development of herbal medicines. Advanced extraction methods offer multiple advantages like a faster extraction process and increased selectivity of the desired compound in contrast to the conventional extraction methods. Screening of the bioactive compounds is a crucial step in the development of herbal medicine which needs to be highly sensitive, precise, and specific. Recent technological advances, such as chromatography techniques, affinity techniques, mass spectroscopy, magnetic, optical methods, etc., enable the detection of even low concentrations of bioactive components unlike the conventional screening methods. To enhance the therapeutic effectiveness, majority of herbal formulations in the market are polyherbal or multi-constituent herbal formulations. Such herbal formulations are available in conventional forms, viz., tablets, gels, and ointments as well as unique drug delivery forms like microencapsulated dosages for offering better stability, palatability, patient compliance, and therapeutic benefits. In order to prescribe herbal medicines to patients in a clinical setting, it is necessary to have a comprehensive grasp of the composition, safety, and efficacy of the active ingredients. To monitor the safety of herbal medical products, however, technical guidelines and international standards in the field of herbal medicine must be developed. In line with the above points, this chapter aims to provide a detailed account of the sequential processes that need to be considered for the development of herbal medicines.