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The medicinal plants are very much required in both modern healthcare as well as the indigenous healthcare system. The identification and usage of medicinal plants can be considered as living tradition in developing countries like India. The World Health Organization (WHO) opines that nearly 80 percent of primary health care requirements of developing countries are met by the Indigenous knowledge which is of tradition. Such indigenous knowledge system largely depends on the plants which form the bulk of medicines. Unfortunately these plants are facing threat of habitual destruction. The biodiversity as the treasure of flora and fauna should be protected to conserve the indigenous medicinal knowledge and the medicinal plants. Being a ratified country to the Convention on Biological Diversity (CBD) the India has been enacted many laws which directly effects on the existence of medicinal plants. The enacted laws, in one or other way lay some positive and negative effect on the conservation of medicinal plants. But a lot of medicinal plants are disappearing knowingly or unknowingly. Medicinal plants do some protection. It may be in the protected area or other, lack of focused conservation strategy leads to destruction of this valuable healthcare treasure. Most of the plant collections like roots, stem, wood, and sometimes whole plant causes the destructive harvesting. The replacement of local communities who are well known about the medicinal plants leads to depletion of medicinal plants and deprivation of indigenous medicinal knowledge which amounts to great loss of biodiversity. This is threatening to the life and survival of the ethno groups which are depends only on their traditional knowledge for their health care. The indigenous medicinal knowledge is the intellectual asset of local community and its protection strongly affirmed by the World Intellectual Property Organization (WIPO). The major issue with respect to the indigenous medicinal knowledge and plants is the misappropriation by the commercial intellectuals without benefit sharing. India had its bitter experiences with respect to sovereign rights over the natural resources .Fight for right over turmeric, neem, and basmati are the classic examples. Of course such experiences cause to enact the laws to protect our diversified valuable biodiversity which also includes the protection medicinal plants and its knowledge in the local communities. The objective of this article is to analyses the importance of protection of medicinal plants in order to conserve the indigenous medicinal knowledge in India along with the legal issues.