The present study was carried out to evaluate the hypoglycemic and its related hypolipidemic property of Eugenia jambolana in streptozotocin-induced diabetic rats. Eugenia jambolana (EJ) methanol extracts were administered for (150 mg kg-1 b.w.) for 60 days to streptozotocin (STZ) (60 mg kg-1 b.w.) induced male diabetic wistar rats. It was found that serum glucose concentration was significantly (p<0.05) decreased compared to the control. In addition, oral administration of EJ significantly (p<0.05) decreased serum total cholesterol, LDL-cholesterol, VLDL-cholesterol, triglycerides and at the same time markedly increased serum insulin and HDL-cholesterol levels. Administration of glibenclamide, a reference drug (0.6 mg kg-1 b.w.) also produced a significant (p<0.005) reduction in blood glucose concentration in STZ-induced diabetic rats. Thus, the results of this experimental study shows that Eugenia jambolana possesses hypoglycemic and hypolipidemic effects and is able to ameliorate the diabetic state and is a source of potent hypoglycemic agent.