The fruit of Phoenix pusilla Garetn. has been used in herbal medicines, as it is sweet, sour, cooling and laxative, cardiotonic, aphrodisiac, carminative and roborant. The objective of the present study was to investigate the antioxidant and antidiabetic effect of ethanolic extract of unripe fruit of Phoenix pusilla in streptozotocin-induced diabetic rats. The extract was analyzed for the presence of various phytoconstituents like tannins, flavonoids, vitamin C, vitamin E, protein, carbohydrates, lipids and phenolic compounds. Streptozotocin (40 mg/kg body weight, i.p.) was administered to induce diabetes in adult rats. The extract (100 and 200 mg/kg) and glibenclamide (6 mg/kg) were administered orally for 21 days to evaluate antioxidant and antidiabetic activity. Blood glucose, serum total cholesterol and triglycerides levels were estimated. Carbohydrate and lipid metabolizing enzymes glucose-6-phosphatase, fructose-1,6-diphosphatase, glycolytic enzymes like hexokinase and liver-function enzymes superoxide dismutase (SOD), glutathione peroxidase (GPx), production of thiobarbituric acid reactive substances (TBARS), reduced glutathione (GSH), alkaline phosphatase (ALP), aspartate aminotransferase (AST), alanine aminotransferase (ALP), renal-function markers like urea and creatinine level were also measured. Histopathology of pancreas was studied. The results indicated that extract normalized the blood, liver, renal and pancreatic functions in streptozotocin-induced diabetic rats. Hence it can be concluded that the extract possesses antioxidant and antidiabetic activity. The findings support the conventional usage of Phoenix pusilla unripe fruit in treating diabetes.