Diabetes is a well known cause of delayed inflammation healing yet, the impact of diabetes on inflammation healing is not widely appreciated. The phytochemical studies were carried out aqueous ethanolic extract of Punica granatum. Carrageenan was used to induced rats paw oedema and diclofenac sodium (100 mg/kg, i.p route), which has been served for positive control. Glucose Tolerance Test (GTT) was conducted in rats and glibenclamide oral dose of 20 mg/kg, which has been used for positive control. The phytocheical studies were indicated in the presence of saponin glycosides, steroids, tannins and terpenoids. The results revealed that the aqueous ethanolic extract of Punica granatum 200 mg/kg and 400mg/kg dose levels have showed significant decrease in the paw volume (P<0.001) when compared to control and positive control. The aqueous ethanolic extract of Punica granatum 200 and 400mg/kg dose levels were showed significantly reduced in the blood glucose level (P<0.001) when compared to control and positive control.