Background Ethanolic extract of Mitragyna pareidolia leaves were used as a traditionally use in the treatment of diabetic conditions. The aim of the current study was to find out the effect of Mitragyna pareidolia ethanolic leaves extract (MPE) on hyperglycemia developed by streptozotocin (STZ) induced type 2 diabetes in rats. Materials and Method An animal model of diabetes type 2 was developed by administration of STZ 90 mg/Kg to two-day old neonatal rat pups. Oral glucose test and parameters were examined of diabetic rat after the different dose of extracts. The rats were existing into following groups: Group I –Normal control, Group II – STZ diabetic control, Group III –STZ Diabetic –orally administered MPEx at doses of 300 mg/kg, Group IV STZ-Diabetic – orally administered at doses of 500 mg/kg, Our study was confirmed that 8 weeks chronic treatment with MPE in a dose dependent manner (300 and 500 mg/kg) reduced hyperglycemia and significantly increased serum insulin, C-peptide. Histology of liver was performed after sacrificing the rats with euthanasia. Result The ethanolic extract of MP was not show any acute toxicity up-to the dose of 2000 mg/kg and it was shown better glucose consumption in oral glucose tolerance test. Orally treatment of different doses of MP leaves extract decreased the level of serum glucose, reduce elevated levels of tumor necrosis factor α (TNF-α), interleukin IL-6 in the serum of diabetic rats. After the study, we found that elevated blood glucose and lipids were bring back to near normal. In addition, MPE also reduce elevated levels of tumor necrosis factor α (TNF-α), interleukin IL-6 in the serum of diabetic rats. Conclusion We conclude that MPE exerted antidiabetic effects and reduced its associated complications such as dyslipidemia and inflammation. HE and confocal image of TUNEL assay showed that MPE reduced inflammation and apoptosis in diabetic rats.