Objective: The objective of research paper was to evaluate the antidiabetic activity of methanolic extract of roots of Aerva lanata Linn. (MEAL) and rhizomes of Curcuma caesia Roxb. (MECC) in streptozotocin (STZ)-induced diabetic rats. Materials and Methods: The concentration of MEAL and MECC (200 mg/kg b.w, p.o) and combination of MEAL + MECC (200 mg/kg b.w, p.o) was administered orally and evaluated for the estimation of biochemical parameters such as body weight, OGTT, Total Cholesterol, Triglycerides, HDL (VLDL and LDL), Total protein, Albumin, ACP, ALP and SGPT and SGOT by using standard procedures. Results and Discussion: The antidiabetic activities data indicate substantially altered physiological and biochemical parameters. The dose of Aerva lanata Linn. (MEAL) and Curcuma caesia Roxb. (MECC) 200 mg/kg and combination dose shown the progressive decrease in body weight, blood glucose level, Triglycerides, HDL, Total protein, Albumin, ACP, ALP and SGPT and SGOT level as compared to standard drug glibenclamide at a dose of 500 μg/kg. Study result indicates that significant decrease in total cholesterol, triglyceride, and LDL cholesterol levels was observed after treating the STZ-induced diabetic rats with MEAL + MECC individually 200 mg/kg body weight leading to a significant increase in the cholesterol levels. Conclusion: This study demonstrates the antidiabetic potential of combination of Aerva lanata and Curcuma caesia offers scientific validation and basis to develop antidiabetic drug.