Leea indica (Burm.f) Merr is a well-known traditional Chinese medicine. Leaves of Leea indica have multiple pharmacological activities like Antitumour, Analgesic, Antiviral, Sedative and Anxiolytic and NO inhibitory activities. It has long been used as a folk medicine for the treatment of Cardiac diseases, Diabetes, Fever, headache, dizziness, soreness, eczema, sprain, leprosy, bone fracture, body pain, muscle spasms, diarrhoea and dysentery. Scientific studies are not yet carried out to prove the antihyperglycemic activity. To evaluate antihyperglycemic and hypolipidemic activity of Leea indica leaves in alloxan (150 mg/kg) induced diabetic rats. Alcoholic and hydroalcoholic extracts were evaluated for its toxicity (3000 mg/kg) and for antihyperglycemic activity (200 and 400 mg/kg) using glucose tolerance test and alloxan induced model for 21 days. Statistical data indicated significant decrease in blood glucose, triglycerides, total cholesterol, LDL cholesterol, VLDL cholesterol, aspartate amino transferase, alanine amino transferase, creatinine, urea and increased HDL cholesterol, liver glycogen levels when compared to standard drug glibenclamide (10 mg/kg). Hydrolcoholic extract of Leea indica at higher dose was found to be more effective than alcoholic extract. These results reveal that Leea indica has beneficial effect in reducing blood glucose and lipid levels indicating its efficient antihyperglycemic and hypolipidemic activity.