A green one step facile synthesis of graphene nanosheets by Terminalia chebula (T. chebula) extract mediated reduction of graphite oxide (GO) is reported in this work. This method avoids the use of harmful toxic reducing agents. The comparative results of various characterizations of GO and T. chebula reduced graphene oxide (TCG) provide a strong indication of the exclusion of oxygen containing groups from graphene oxide and successive stabilization of the formed reduced graphene oxide (RGO). The functionalization of reduced graphene oxide with the oxidized polyphenols causes their stability by preventing the aggregation. We also have proposed how the oxidized polyphenols are accountable for the stabilization of the formed graphene sheets.