The present study focused on the establishment of micropropagation protocol for the high value Pluchea (P.) indica (L.) Less., genotype, an important medicinal plant and evaluation of the diuretic activity of the leaf extract of the tissue cultured plant. Leaf explants, nodal segments and shoot tips were cultured in MS medium supplemented with auxin and cytokinin and their combinations. With the objective of inducing callus giving rise to new adult plants, naphthalene acetic acid was found to be most effective for (80%) for callus induction. The methanolic extract of leaves of the micropropagated P. indica was investigated for its diuretic activity in Wistar albino rats. Urinary excretion parameters were studied for evaluation of diuretic activity using Frusemide (20 mg/kg, p.o.) as standard. The extract showed significant diuretic activity at the doses of 100, 200 and 300 mg/kg. p.o. An oral acute toxicity study for the extract was carried out and the $LD_{50}$ value was found to be 2,825 mg/kg body weight.