Medicinal plants have been used in the Ayurvedic system of medicine to maintain health and treat diseases. Aegle marmelos is one such plant the leaves and fruit of which have been reported to have varying medicinal properties. The main objective of the study was to evaluate the antidiabetic principle present in the aqueous extract of the leaves of Aegle marmelos in Alloxan diabetic animal model. Albino rates were selected for the study. Diabetes was introduced by a single intra peritoneal injection of Alloxan monohydrate. The diabetic rates were divided into groups were treated with the aqueous extract of Aegle marmelos of two different concentrations (con: 200mg/kg, 400mg/kg). One diabetic group was treated with Daonil. Another group was left untreated the kept as diabetic control. A group of rates were taken as normal control. The period of study was six weeks. The biochemical parameter, were estimated at periodic intervals of 1st 2nd 4th and 6th weeks of dry feeding and the results evaluated with respect to the hypoglycemic activity and toxicity of the drug.