The invention discloses odor masking formulations for stench natural compounds, selected from the extracts, fraction and pure phytochemicals that are produced in combination with a natural or synthetic hydrocolloid polymer gum(s). The invention further discloses novel process of producing the odor and taste masking formulations. The invention also discloses taste masking formulations of valerian extracts with no characteristic stench odor & or negligible stench odor in combination with natural hydrocolloid gum such as guar gum, acacia or other polymers. The invention further discloses method of reducing insomnia, anxiety, Attention Deficit Disorder (ADD), Chronic Fatigue Syndrome (CFS) using odor masking formulation of the current invention. Importantly, the said odor masked formulation of the present disclosure helps in improving sleep cycle and helps in efficient functioning of brain.