Kushta-e- Faulad is a common herbo-metallic preparation of Unani medicine used in anemia, liver disorders, as a tonic in general debility and convalescence. In this work the kushta-e-faulad was prepared in laboratory according to the method given in National Formulary of Unani Medicine (NFUM) and modern method to make a comparative study of the physical properties of Kushta- e- Faulad. In this study we are reporting the preparation and characterization of the finished kushta by Scanning Electron Microscopy (SEM), Transmission Electron Microscopy (TEM) and Energy Dispersive X-ray Analysis (EDAX). It was observed that the Kushta-e-Faulad contained nano-particles of iron-oxide and metallic iron in the range of 06 to 49 nm. Its LD50 and the toxic dose was determined and was found to be 660 mg/kg b.w.