Background: Over two billion people around the world suffer from anemia. Majority of populations are using dietary supplements and herbal medicines for the management of the anemic conditions. Many polyherbal formulations such as Raktavardhak Kadha (RK), are available in the Indian market as a nutritional supplement and herbal-based medicine for anemia. Objectives: The present study is aimed at investigating antianemic potential of polyherbal formulation, RK, against phenylhydrazine-induced anemia in rats. Materials and methods: RK was subjected to preliminary phytochemical analysis and iron estimation. Anemia was induced by phenylhydrazine administration (40 mg/kg, i.p.) for 2 consecutive days. Antianemic activity of RK was investigated at the dose of 1.8 ml/kg, twice daily for 12 days by estimating blood parameters and pathological changes in liver, heart, spleen and bone marrow. Results: RK was found to contain saponins, steroids, flavonoids, tannins and phenolic compounds. Iron content was found to be 5 mg/100 ml in RK. Anemia induction by phenylhydrazine injections to rats caused significant decrease in red blood cells (RBCs), hemoglobin and hematocrit. These decreased levels of RBCs, hemoglobin and hematocrit in blood was significantly improved by the treatment with RK. Furthermore, RK restored pathological changes in liver, heart, spleen and bone marrow tissues near to normal. Conclusion: This study suggests antianemic activity of RK, which can be attributed to its iron content and ability to prevent hemolysis.