Herbal compositions that, when used topically in a therapeutically effective amount, are safe and effective for the regression of spongiform pustules in patients exhibiting chronic inflammatory skin disorders, such as psoriasis. The compositions, which can be formulated as ointments, oils, soaps and shampoos, comprise a non-aqueous herbal extract of Wrightia tinctoria, an herbal extract of Cocos nucifera, and pharmaceutically or cosmetically acceptable excipients suitable for topical use.