The current study was conducted to evaluate the anti-diabetic effect of polyherbal product "diabetic bal" in normal and alloxan induced diabetic rabbits. Glibenclamide was used as standard drug. Diabetes was induced by single i.v. injection of 150 mg/kg b.w. of alloxan monohydrate in rabbits. "Diabetic bal" (250 and 500 mg/kg) significantly decreased the blood glucose level both in normal and diabetic rabbits in dose dependent manner. In oral glucose tolerance test, "Diabetic bal" demonstrated a significant inhibitory effect on rise of blood glucose level compared to control. "Diabetic bal" showed synergistic anti-hyperglycemic effect with dif- ferent units of insulin in diabetic rabbits. The "diabetic bal" decreased the glucose level and prevented the weight loss of diabetic rabbits as compared to control for an extended period of one month. It caused a significant increase (p < 0.001) in the insulin level of treated diabetic rabbits in 30 days study. In addition AST, ALT, ALP, cholesterol, LDLs, VLDLs and triglyceride level were significantly reduced whereas HDLs level was sig- nificantly elevated in diabetic rabbits with 500 mg/kg dose. The herbal product did not cause any significant change in CBC as compared to normal control in diabetic rabbits for one month. It is conceivable; therefore, that "diabetic bal" is effective in diabetes and its associated complications which support its use in folklore.