The powder of henna is extensively used as decorative skin paint for nail coloring and as a popular hair dye in Asian countries. Its human health risk is extensive, and it is frequently released as waste into the aquatic environment raising the concerns. Zebrafish (Danio rerio) embryos were employed to study the developmental effects of henna. Normal fertilized zebrafish embryos under standard water were selected for the control and test chambers. Three predetermined sublethal concentrations (100, 200, and 275 μM) of henna in 24-well cell culture plates were tested on 1-h postfertilized embryo (pfe) for 96 h. Observation for rates of survival and mortality was recorded; digital camera was used to image morphological anomalies of embryos with a stereomicroscope; and functional abnormalities at 24, 48, 72, and 96 h were performed. The hatching rates of embryos were reduced significantly when treated with 200 and 275 μM or higher concentrations of henna. Slow blood circulation in the whole body was observed with a median effect on hatching exposed to 200 and 275 μM of henna at 48-h pfe. At 72- and 96-h pfe, blood circulation was ceased in the whole body but still had a heartbeat. At 96-h pfe, pericardial sac edema, yolk sac edema, head deformation, spine crooked malformation, and tail malformation (bent tails or hook-like tails) were observed in the surviving larvae at 100 μM. In summary, exposure to henna at 100, 200, and 275 μM causes some altered morphological and physiological abnormalities including increased mortality, hatching delay, slow blood circulation, pericardial sac edema, yolk sac edema, abnormal body axes, twisted notochord, tail deformation, weak heartbeat, and growth retardation and was also detected in some treated embryos and groups having adverse effects on embryonic development of zebrafish provoking potential human developmental risk studies.