Purpose: Insomnia is a sleeping disorder characterised by persistent difficulty in falling asleep or staying asleep despite the opportunity. It is one of the burning problems all over the world. Statistics shows that 20% - 40% adults encounter insomnia problems during a year time. Allopathic hypnotic drugs are useful for short term treatment in Insomnia which is due to acute stage. Long term uses of certain classes of sedatives cause physical dependence and withdrawal symptoms also have a number of side effects. In the present era, patient prefers readymade, cost effective, easily palatable drugs with fewer side effects for their health problems. For the present clinical trial, Parsikayavanyadi Capsule consisting of Parasikayavani, Jatamamsimoola, triturated with juice of Sankhpushpi and Kushmanda, was formulated to evaluate its efficacy in the management of insomnia Method: Total 32 patients of newly diagnosed case of insomnia who were randomly divided in to two groups. In Group P.V (Parasikayavanyadi group), 20 patients were administered 5 capsules of Pariskvayanadi Churna of 500 mg each with a cup of warm milk at bed time for one month. In Group P.C (Placebo group), 12 patients were given Starch Capsules of 500 mg each with same Anupana and duration. Assessment was done considering the overall improvement of insomnia according to Pittsburgh insomnia rating Scale, improvement of associated complains of insomnia, relieving of negative emotions, improving of positive emotions, relieving of level of anxiety according to Hamilton Anxiety Rating Scale and relieving of level of depression according to Hamilton Depression Rating scale before and after one month of treatment period. Result: parasikayavanyadi capsule provided significant effect in the management of insomnia. Conclusion: The study has revealed that parasikayavanyadi capsule provided significant effect in the management of insomnia in comparison to placebo.