The present study aims to investigate the effect of ethanolic extract of Olive leaves (Olea europaea L.) on blood glucose and cholesterol levels in diabetic rabbits. Diabetes was induced in rabbits by intraperitoneal injection of alloxan. The experiment was carried out on 36 rabbits of both sexes weighing between (2100-2500gm). The experimental animals were divided into 3 groups, each group consisting of 12 animals. The first group was left as control, while the second and third groups, they were rendered diabetic by intraperitoneal injection of alloxan (175 mg/kg b.wt.). The second group was left as diabetic control, while the third was treated with the ethanolic extract of Olive leaves in a dose of 500 mg/kg b.wt. orally/ day for 4 weeks. Blood samples were collected weekly till the end of the experiment from the heart for determination of glucose and cholesterol levels. The results obtained showed that oral administration of Olive leaves ethanolic extract significantly decreased the high blood glucose and cholesterol levels of the treated diabetic rabbits, as compared to the diabetic control group. In conclusion, Olive leaves of ethanolic extract produces antidiabetic and hypocholesterol levels in alloxan-diabetic rabbits and it may be beneficial to help patients who suffer from diabetes mellitus.