Globally, both developed and developing nations are seeing a dramatic increase in the prevalence of Diabetes mellitus patients. The currently available treatments, particularly synthetic pharmaceuticals, often fail to restore normal blood glucose levels without side effects. Many herbal remedies are being investigated as complementary treatments for diabetes. The primary objective of this research was to test the ethanolic extract of leaves of Schefflera arboricola on alloxan induced diabetic rats. Acute oral toxicity was performed according to OECD guidelines 425. Animals were divided in to 6 groups. Normal control and toxic control group animals were administered with normal saline (1ml/100g), Std. group animals were treated with Glibenclamide (10 mg/kg), three diferent doses of ethanolic extract (100 mg/kg, 200 mg/kg, and 400 mg/kg bodyweight) were administered to test group diabetic animals. Body weight was measured every week. On 0,7,14,21 and 28 day blood was withdrawn by retro orbital plexus for estimation of blood glucose level. While lipid profile and antioxidant parameters were estimated at on 28th day . A significant decrease (p<0.05) in blood glucose and lipid profile was seen at 200 mg/kg level as compared to 100 and 400 mg/kg. The level of oxidative stress was also decreased at 200 mg/kg. The antihyperglycemic effect of S. arbicola was may be due to the presence of saponin and terpenoids and may also be due its antioxidant property. Our research indicates that S. arboricola's ethanolic extract may effectively restore blood glucose as well as lipid profile in diabetic wistar rats.