Abstract Panchagavya, a venerable elixir from the Ayurvedic tradition, merits scholarly inspection. It denotes the sacred offerings of cow’s milk, urine, dung, ghee and curd, holding medicinal import within Ayurveda’s ancient practices. This study aims to illuminate differences between probiotic variants V2 and V7, through findings on their pharmacological applications and biochemical concentrations. It is proposed that fermented panchagavya’s psychobiotic strains may exhibit favorable reactions worth examining. Chiefly, the organic synthesis of neurotransmitters by beneficial bacteria is of interest. The regulatory neurotransmitter gamma-aminobutyric acid (GABA) could potentially be generated by a panchagavya-derived probiotic. Through serial dilution culture of bacteria obtained from fermented panchagavya, their growth and GABA formation, as evaluated by thin-layer chromatography and ultraviolet-visible spectrometric analysis, are observed. Strain V2 demonstrates promising pharmacological properties including antioxidant, anti-inflammatory, anti-diabetic and anti-obesity effects, as well as inhibition of albumin denaturation and heat-induced hemolysis. It presents a higher concentration of such activities than V7. Biochemical tests further indicate V2’s larger percentage of GABA synthesis, supporting prospective therapeutic applications. After sequencing selected strains to explore psychobiotic functioning, their isolation holds medical import as GABA-producing beneficial bacteria from fermented panchagavya.