Diabetes, a major global health issue, affects 424.9 million people worldwide, with a significant portion undiagnosed, leading to severe health and economic impacts. Effective management of diabetes includes dietary interventions, among which nutraceuticals play a crucial role. Nutraceuticals are food-derived compounds that offer health benefits, including disease prevention and treatment. This study focuses on the development of an antidiabetic nutraceutical instant soup powder formulated with ingredients like fenugreek seed, finger millet, tomato, curry leaves, garlic, black pepper, black salt, stevia, and oyster mushrooms.The raw materials were sourced from local markets and processed to create a fine powder mix. The soup powder’s physicochemical parameters, including pH, viscosity, moisture content, and ash levels, were measured. Nutritional analysis, sensory evaluation, and heavy metal content determination were conducted following standard protocols. The soup powder exhibited significant antimicrobial, antioxidant, and antidiabetic properties, demonstrating potential as a dietary supplement for diabetes management. The sensory evaluation indicated high acceptability among the panelists, highlighting the product’s feasibility for consumer use.