Plants are the major source of therapeutic compounds and have huge applications in Pharma Industry. To identify new sources of therapeutic compounds, we studied acute toxicity, antihyperglycemic, anti-inflammatory, and anticoagulant activities of the polar and nonpolar fractions of Justicia aurea (J. aurea). Our initial phytochemical screening of J. aurea exhibited the presence of numerous secondary metabolites such as reducing sugars, glycosides, tannins, gums, alkaloids, phenolic compounds, and carbohydrates which might be primarily responsible for its medicinal properties. In the acute toxicity test, the result showed no toxicity up to 2000 mg/kg. In the antihyperglycemic activity test, administration of petroleum ether fraction and water fraction of J. aurea extract to glucoseloaded mice at 250 and 500 mg/kg body weight (BW) reduced the blood glucose levels compared to control mice. Between two fractions, the water fraction was found to exhibit better potentiality at 500 mg/kg BW. In the anti-inflammatory assay, at 250 and 500 mg/kg water fraction exhibited anti-inflammation by 20.00% and 31.67%, respectively and petroleum ether fraction by 13.33% and 18.00%, respectively. In anticoagulant activity, the test indicated that water fraction has minor anticoagulant potentiality compared to control. In conclusion, the polar water fraction shows better medicinal properties than the nonpolar petroleum ether fraction of J. aurea.