The objective of this study is to investigate the alcoholic extract of Leucas cephalotes for antidiabetic effects in laboratory animals. Diabetes was induced in rats by administration of alloxan (120 mg/kg body wt.). In normal rats, alcoholic extract had significantly decreased the blood glucose level (BGL) in a dose-dependent fashion after repeated administration of alcoholic extract for 7 days. In alloxan-induced diabetic rats, the extract decreased the BGL with significant improvement in glucose tolerance and body weight at the end of I, II and III week after alcoholic extract treatment. These results suggest that alcoholic extract is having potent antidiabetic activity in comparison with normal as well in diabetic rats.