In recent years, the alginate-encapsulated in vitro-derived shoot tips and nodal segments have been employed as an alternative to somatic embryos method of artificial seed production. Encapsulation of non-embryogenic propagules offers an efficient technique for clonal propagation of elite genotypes e.g. plants of medicinal importance and also enables the establishment of basal collection for gene banks. The artificial seeds technology based on vegetative micropropagules may be useful not only in large-scale propagation but also in short- and long-term conservation and germplasm exchange of desirable species genotypes. This paper presents a brief overview of current status of plants of medicinal value propagated by alginate-encapsulated non-embryogenic plant material.