The present study was an attempt to investigate the effect of polyherbal extract on streptozotocin induced diabetes in Wistar rats. The polyherbal extract contains the whole plant extract of Adiantium capillus, seeds of Astercantha longifolia, fruits of Callicarpa macrophylla, bark of Ficus benghalensis, aerial parts of Melia azedarach. Two gropus of streptozotocin-induced diabetic rats were orally treated with glibenclamide (10mg/kg) and Polyherbal extract (100 and 200 mg/kg) respectively. The blood glucose level, body weight, Glycosylated hemoglobin, liver glycogen, lipid profile, Antioxidant status were measured at the end of the study i.e. after 21days of treatment. Polyherbal extract and glibenclamide were found to be significant (p < 0.001) in reducing the blood glucose level, glycosylated hemoglobin, lipid profile, whereas both the treatments increased body weight, liver glycogen content and antioxidant status when compared to the diabetic control. It has been concluded that Polyherbal extract, in addition to the antidiabetic activity, also possess antihyperlipidemic and antioxidant activities in the streptozotocininduced diabetic model.