Background Garbhakshaya described in Ayurvedic texts denotes underdeveloped fetal growth due to improper nourishment, which parallels Intrauterine Growth Restriction (IUGR) in modern obstetrics. IUGR is associated with increased perinatal morbidity and mortality. Objective To evaluate the efficacy of Yashtimadhuwadi Churna in the management of Garbhakshaya with special reference to IUGR. Method A 26-year-old primigravida at 28 weeks gestation with reduced fetal movements and lagging fundal height was diagnosed with IUGR. Yashtimadhuwadi Churna (5 g twice daily with warm milk after meals) was administered for 8 weeks alongside routine antenatal care. Maternal weight, fundal height, fetal growth parameters (USG), and subjective wellbeing were assessed. Results After 8 weeks, fundal height matched gestational age, maternal weight gain was +4.5 kg, AFI improved from 7 cm to 10.5 cm, and estimated fetal weight improved from <10th percentile to 25th percentile. At term, the patient delivered a healthy 2.7 kg female infant by normal vaginal delivery. No adverse effects were reported. Conclusion Yashtimadhuwadi Churna improved maternal and fetal parameters in IUGR without side effects, suggesting its efficacy as an adjuvant in the management of Garbhakshaya/IUGR. Larger clinical studies are warranted for validation.