Diabetes mellitus (DM) is a metabolic disorder leading to high level of morbidity and mortality in human population and it has been identified as the leading cause of death from non-infectious diseases. The use of dexamethasone has been on the increase due to wide array of therapeutic effects it has and the use has mostly been without prescription, since it is a non- prescription drug. Therefore, the potential of dexamethasone to induce DM was studied. Some of the drugs currently used in the treatment of diabetes have their own problematic effects and also expensive, Annona muricata methanolic bark extract(AMMBE) was used in the treatment of dexamethasone-induced diabetes in rats. The research was carried out on albino rats in Federal College of Animal Health and Production Technology, Ibadan and lasted for twenty-eight (28) days. The rats were allotted into four groups (A, B, C and D). Group B, C and D were induced with glucocorticoid (Dexamethasone) (2mgkg-1) daily for seven (7) days intraperitoneally, while group A which was the positive control were given distilled water throughout without induction with glucocorticoid. Group B (the negative control) was induced with glucocorticoid with noAMMBE administration. Group C, was induced and treated with AMMBE at 400 mgkg-1for 14 days. While Group D, was induced with glucocorticoid and were treated with the standard drug (glibenclamide) at 2.5mgkg-1body weight of the rats daily for 14 days. Organ samples of liver, kidney and pancreas were collected for histopathological lesions evaluation. The result showed that dexamethasone induced diabetes after seven (7) days of intraperitoneal administration of 2 mgkg-1 body weights with the glucometer readings in most of the albino rats up to and above 129 mgdL-1. The average blood sugar levels in induced groups (B, C and D) were 132.0±4.05, 129.0±1.41 and130.0±2.93, respectively which were not statistically significant (P>0.05). After administration of AMMBE, the average blood sugar level for group B (126.0±1.41) was significantly different (P<0.05) from C (91.0±1.72) and D (87.0±2.97). Clinical signs of alopecia, dehydration, writhing, paw-licking were observed. There were massive losses of pancreatic cell mass grossly afterinduction with dexamethasone. Histopathological lesions observed ranges from no visible lesion in the control and glibenclamide treated groups to accentuation of hepatocytes in the AMMBE treated rats, and marked vacuolar degeneration of hepatocytes in periportal areas to centrilobular area with Kidney degeneration and multifocal coagulation necrosis of tubular epithelium in group induced with dexamethasone but untreated (group B)Diabetogenic potential of dexamethasone and effect Annona muricata methanolic bark extract degeneration, multifoci coagulation and necrosis. The blood sugar levels post exposure to AMMBE and Glibenclamide showed reduction in the sugar levels. It could be concluded that dexamethasone has the potential of inducing diabetes when its use is prolonged and AMMBE has antidiabetic effect which could be fully explored.