Cyperus rotundus L. (Cyperaceae) is used as an active ingredient of most of the ayurvedic antidiarrhoeal formulations. A study was undertaken to evaluate the effectiveness of Cyperus rotundus as a antispasmodic in diarrhoea. An aqueous extract of tubers of Cyperus rotundus (ACR) was tested for its antidiarrhoeal and antispasmodic activity. Antidiarrhoeal effect of ACR was evaluated in castor oil induced diarrhea in mice and antispasmodic effect was evaluated by charcoal meal test in mice at a dose of 125, 250, 500 mg/kg. The % inhibition of diarrhoea was 30.36 %, 37.90 %, 45.45 % and 92.45 % for ACR 125, 250, 500 mg/kg (po) and Loperamide 2 mg/kg dose (po) respectively. ACR 125, 250, 500 mg/kg (po) and Atropine Sulphate 2 mg/kg dose (po) produced 24.35 %, 31.48 %, 36.75 % and 55.94 % inhibition of intestinal transit respectively. These results indicate that ACR produces its antidiarrhoeal effect through decreasing intestinal secretions and antispasmodic effect by inhibiting the intestinal motility.