Diabetes is a condition primarily defined by the level of hyperglycemia giving rise to a risk of microvascular damage (retinopathy, nephropathy, and neuropathy).Over 400 traditional plant treatments for diabetes have been reported, although only a small number of these have received the scientific and medical evaluation to assess their efficacy. The World Health Organization Expert Committee on diabetes has recommended that traditional medicinal herbs be further investigated. In the Indian system of medicine, Mukia maderaspatana Linn was used for different pharmacological activities. But the pharmacological and scientific evidence for its antidiabetic effect is yet to be proved. So, based on above fact it can be evaluated for antidiabetic and antioxidant property in streptozotocin (STZ) induced diabetic rats for 21 days. Diabetes was induced using streptozotocin (50 mg/kg i.p) and after the induction of diabetes the animals were given with MEE (100 mg/kg, 200 mg/kg), MCF (100 mg/kg) and MBF (100 mg/kg) orally for 21 days. Blood glucose levels were determined by using a GOD-POD method with diagnostic kits. After 21 days the parameters like HDL, LDL, VLDL, TC, TG, Albumin, Creatinine, total protein and glucose were estimated. The treatment with the extracts and fractions of Mukia maderaspatana Linn improved the lipid level and lipoprotein level to a normal condition which may be attributed to its potent antidiabetic activity.