Background: Argemone mexicana L. (Papaveraceae) commonly known as prickly poppy is an indigenous herb used as a medicinal plant in several countries. Aim: The investigation was carried out to study the effects of chloroform and aqueous soluble fractions from hydroalcoholic extract of Argemone mexicana in normoglycemic and alloxan induced diabetic rats. It was also intended to establish correlation between the marker antioxidant enzymes and diabetes. Materials and Methods: Hyperglycemia was induced in rats by alloxan monohydrate (150mg/kg body weight i.p.). After alloxan induction diabetic rats received chloroform and aqueous fractions orally at 150 mg/kg body weight daily for 21days. The parameters studied were blood glucose, creatinine and urea, serum lipid profile, serum enzymes [serum glutamate pyruvate transaminases and serum glutamate oxaloacetate transaminases, lipid peroxidation, antioxidant enzymes (catalase (CAT), superoxide dismutase and reduced glutathione. The results of test drug were compared with standard hypoglycaemic drug-glibenclamide (5 mg/kg). Statistical analysis: All data were expressed as means ± SEM. Dunnet’s t-test and one-way ANOVA test was used to compare the mean values of test groups and control. Results: . Experimental findings showed that the chloroform and aqueous soluble fractions significantly (P < 0.01)normalized blood glucose levels, serum biochemical parameters; decreased LPO and recovered glutathione‑S‑tranferase (GST) and CAT as compared with those of alloxan controls.. Conclusion: From this study it may be concluded that the potential anti‑diabetic action of chloroform and aqueous fractions of A. Mexicana is plausibly due to its modulation of endogenous antioxidant status Key words: Anti‑diabetic activity, Argemone mexicana, alloxan monohydrate