The present study was aimed to evaluate the anti diabetic activity potential of Euphorbia hirta leaves against streptozotocin (STZ) induced experimental rats. Ethanolic extract of E. hirta leaves was administered to streptozotocin induced rats. Glibenclamide was used as a standard drug. Blood glucose levels were determined after oral administration of a dose of Euphorbia hirta (400 mg/kg b. wt) in diabetic groups. Blood glucose levels were determined on 0, 7th, 14th and 21st day after oral administration of ethanolic extracts of E. hirta (400 mg/kg). An ethanolic extract of Euphorbia hirta was found to reduce blood sugar in streptozotocin induced diabetic rats. Reduction in blood sugar could be seen from 7th day after continuous administration of the extract. The effect of extracts of Euphorbia hirta on serum lipid profile like total cholesterol, triglycerides, low density lipoprotein (LDL), very low density lipoprotein (VLDL) and high density lipoprotein (HDL) were also measured in the diabetic and non diabetic rats. There was significant reduction in total cholesterol, LDL cholesterol, VLDL cholesterol and improvement in HDL cholesterol in diabetic rats. These results indicated that Euphorbia hirta possesses significant hypoglycemic and antihyperlipidemic effect.