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For decades, researchers have sought ways to reduce or eliminate type 2 diabetes, for which the exact cause is not known, and there is no cure. Chinese herbal medicine has a long history of successful treatment of diabetes. Long term consumption of food products containing Chinese herbs with hypoglycemic properties could be a viable treatment solution for diabetic patients. The purpose of this study was to develop a process for manufacturing a new bread product that contains Chinese herbs with hypoglycemic properties. Different fractions of the herbal formula were added into the dough to determine a maximum dosage that would produce bread that is palatable, shelf-stable, and retains desirable organoleptic properties of bread. Results demonstrated little variation in moisture between the control sample and the samples with herbs. With increasing amounts of herbs, the acidity of the bread increased and the porosity decreased. Organoleptic characteristics, such as appearance and internal structure of the baked samples with herbal formula did not demonstrate significant changes. It was concluded that the addition of the herbal formula, regardless of the dosage, improved shelf life, slowed the staling process and improved the microbiological stability of bread.