Ocimum sanctum L. is widely used as traditional remedy to manage hyperglycemia. This study was aimed to evaluate the effect of aqueous-methanolic extract of O. sanctum leaves (OSE) on the anti-diabetic activity of gliclazide in alloxan-induced diabetes in Wistar rats. Diabetes was induced by intraperitoneally injecting alloxan (120 mg/kg b.w.) in rats. Treatments including OSE (100 mg/kg b.w.), gliclazide (100 mg/kg b.w.), and in combination were given daily to diabetic rats till the 21st day of study. Body weight and fasting blood glucose levels were determined at regular intervals, while blood and organ samples were taken at the end of the study for biochemical and histopathological studies. Results showed that treatments exhibited anti-hyperglycemic activity through significantly (p [ 0.05) restoring body weight, fasting blood glucose level, and serum levels of glucose, insulin and HbA1c. The anti-lipidemic activity was noticed as total cholesterol (TC), triglyceride (TG), high-/low density-lipoproteins (HDL-C, LDL-C) levels were restored in treated diabetic rats. Ameliorative effects of treatments were observed as significant (p [ 0.05) reduction in serum levels of liver function biomarkers (alanine aminotransferase; ALT, aspartate aminotransferase; AST, alkaline phosphatase; ALP and bilirubin; BIL) and restoration of oxidative stress biomarkers (catalase; CAT, superoxide dismutase; SOD and malondialdehyde; MDA) in liver tissue. Histopathological findings supported these results as an increase in pancreatic islets size and protective effects on liver tissue was observed in diabetic rats treated with gliclazide and OSE alone and their combination. Conclusively, the combination of OSE and gliclazide produced a synergistic anti-diabetic effect as compared to that of alone treatment.