A toxicological study was carried out in rats with a Siddha preparation, milk extracts of Semecarpus anacardium nuts. The effect of acute (72 h) and subacute (30 days) treatment of the drug with different dosage on liver and kidney functions and hematological parameters were studied. The acute toxicity studies with this drug did not produce mortality at any dose level given (75–2000 mg/kg body weight). No marked adverse alterations were observed in hematological and biochemical parameters during the subacute toxicity studies (50, 100, 250 and 500 mg/kg body weight). In the subacute treatment, the highest dose (500 mg/kg body weight) alone showed a moderate increase in the level of blood glucose, plasma urea, uric acid, and creatinine. In addition, alteration in lipid profiles were observed which may be attributed to the ghee preparation of the drug. Decrease in urinary urea, uric acid and creatinine levels were also observed. Histopathological examination of vital organs showed normal architecture suggesting no morphological disturbances.