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This research is conducted to provide solutions to the problems faced by traditional herbal sellers in Bandung Indonesia in facing the competition with herbal products containing chemical drugs and the development of modern medicine both from domestic and foreign countries. Ethnobotany studies is implemented (assessing the knowledge of herbal sellers regarding the types and parts of medicinal plants used, the method of cultivation and the benefits obtained, the active compound contents in medicinal plants), and the formulation on the business development strategy of traditional herbal medicine. The results are expected to increase the public knowledge towards traditional herbal medicine products which will then increase the purchasing power of herbal medicine among the society. The study is conducted by census of 27 traditional herbal medicine sellers in Bandung. The research method used is qualitative and quantitative methods, whereas the formulation on the business development strategy of traditional herbal medicine used SWOT analysis. The results indicated that there are as many as 24 types of medicinal plants from 13 tribes or families used as the raw materials of traditional herbal medicine. Knowledge of herbal medicine sellers about the benefits of herbal medicine is in accordance with the academic rules with the study of the literature regarding the content of active substances contained in medicinal plants used. The development of herbal medicine business can be conducted with the support of government regulation towards traditional herbal medicine, the utilization of knowledge possessed by herbal sellers in the procurement of medicinal plants (raw materials), and favourable marketing in facing the competition with traditional medicine from foreign countries i.e. China