Green chili is sundried to avoid the nutrition and active content losses. The extraction process of the soluble solids of green chili is carried out in a counter current extraction system. To remove the impurity green chili slurry is passed through basket filter. The slurry is then passed through clarification to remove impurities. The green chili slurry is then concentrated using evaporator. Carrier is added to the concentrated slurry then the slurry is spray dried to get Green chili Powder. Then the powder is sieved through a vibratory sleeve to result in the fine free flowing natural green chili powder.