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The study revealed the antidiabetic activity of the ethanol extract of Exacum wightianum Arn. (Gentianaceae) in streptozotocin induced diabetic rats. The pilot studies were carried after oral administration at doses of 100, 200, 500 and 1000 mg/kg b.wt. in sub-acute study. In diabetic induced rats fed with the extract at 100 and 200 mg/kg body b.wt. The fasting plasma glucose levels were reduced to near normal body and liver weight were found to be increased. Whereas blood glucose, protein, albumin and creatinine levels were estimated after two weeks. The extract significantly inhibited the induction of albuminuria, proteinemia and uremia. The present study clearly indicated a significant antidiabetic activity with the ethanol extract of E. wightianum supports the traditional usage of the plant by Ayurvedic physicians for the control of diabetes. The extract could be useful in preventing the incidence of long term complications of diabetes mellitus.