Physalis is a genus of a perennial, herbaceous or annual plant, which is mostly the local plant of tropical North & South America. Few species of Physalis are widely distributed in warmer parts of world. Some species of Physalis grow in its edible fruits. One or two species occur wildly in India, while three other species are cultivated. Plant Physalis peruviana Linn. (Family: Solanaceae) is one of the important species of genus Physalis found in India, especially leaves & fruits have been traditionally used as a diuretic, muscle relaxant, in inflammation, for prevention of tooth decay & abdominal ailments throughout the world. The plant is reported to relieve hypertension, asthma, urinary problem & widely valued for its calming properties. The present study was initiated to investigate the diuretic effect of hydroalcoholic extract of Physalis peruviana (HEPP) in Wistar rats. Hydroalcoholic extract of Physalis peruviana leaves was administered at the dose of 50, 100 & 200 mg/kg,p.o. Hydrochlorothiazide (500mg/kg, p.o.) was used as a positive control in the study. The diuretic effect of the extract was evaluated by measuring the volume of urine, sodium, chloride & potassium content in the urine sample. Urine volume significantly increased at two doses of HEPP extract that is 100 & 200 mg/kg body weight in treated rats. Excretion of chloride, sodium and potassium levels were also increased (77.42 mmol/l, 85.20 mmol/l and 43.6 mmol/l respectively) by HEPP extract (200 ml/kg).The diuretic effect of the hydroalcoholic extract was similar to hydrochlorothiazide at the dose of 200 ml/kg. This study concluded that HEPP produced a notable diuretic effect which appeared to be comparable to that produced by the standard diuretic hydrochlorothiazide. The present study provides a quantitative basis for investigating the use of Physalis peruviana as a diuretic agent.