Objective: To evaluate the antidiabetic and hypolipidemic effect of ethanolic seed extract of Prosopis juliflora in fructose induced hyperglycemia in wistar albino rats in comparison with Metformin. Materials and methods: 30 male wistar albino rats were divided equally into 5 groups. Group I and II were the normal and the disease control groups. While, groups III to V were the treatment groups. Animals in group I received regular drinking water; whereas, groups II to V received 20% fructose water for 8 weeks. After 8 weeks, animals in groups II to V had elevated fasting blood sugar, HOMA-IR, weight gain and dyslipidemia. From week 9 to 16 group I animals continued to receive regular drinking water, group II received 2ml of distilled water and groups III, IV and V received Metformin 200mg/kg, P.juliflora extract 400mg/kg and 600mg/kg respectively in addition to 20% fructose water. The animals were sacrificed at the end of 16 weeks and histopathological examination of pancreas was done. Biochemical and hematological assessments were done at baseline and at 16 weeks to assess safety of the interventions. Results: When compared to the disease control group, animals in group III treated with metformin and groups IV and V treated with P.juliflora extract at doses of 400mg/kg and 600mg/kg showed a significant decrease in Fasting blood glucose, HOMA-IR and improvement in lipid profile. Even though both the doses of the extract showed significant pharmacological activity, 600mg/kg showed better activity equivalent to metformin. Histopathological examination of pancreas showed regenerative changes in the metformin and P.juliflora 600mg/kg treated groups. No significant abnormality was observed in the biochemical and haematological parameters at the end of the study. Conclusion: P.juliflora seed extract in the dose 400 mg/kg and 600mg/kg exhibited antidiabetic and hypolipidemic activity with no significant adverse events, in this study. Both the doses were having anti dyslipidemic effect similar to metformin whereas 600 mg/kg dose of P.juliflora was having better antidiabetic effect comparable to Metformin. Keywords: Diabetes, Dyslipidemia, P.juliflora, Fructose, Metformin, Metabolic syndrome