The present study was designed to investigate antidiabetic & hypolipidemic potential of alcoholic extract of Alocasia indica Schott. leaves (Araceae) in streptozotocin induced diabetic rats. Diabetes was induced by single intraperitoneal injection of streptozotocin (60 mg kg-1). Graded doses (200 & 400 mg kg-1) of test extracts were studied in both normal & streptozotocin induced diabetic rats for the period of 21 days. Glibenclamide (10 mg kg-1) was used as standard drug. Blood glucose levels & body weight was monitored at specific intervals and lipid profile parameters such as serum cholesterol, serum triglyceride & high density lipoprotein (HDL) were also assessed in experimental animals. The statistical data indicated significant increase in body weight & decrease in blood glucose level & serum lipid profiles (cholesterol & triglyceride) in test extract treated animals. These results could explain the basis for the use of this plant extract to manage serum glucose level and lipidemia associated with diabetes mellitus.