Background and Objectives: Type-2 diabetes mellitus (T2DM) is a systemic disease which have higher incidence of gingivitis and periodontitis. Pomegranate peel has higher content of phenolic compounds with potent anti-inflammatory, antioxidant and antibacterial activity. The aim is to evaluate the efficacy of pomegranate peel extract on the clinical and biochemical measures of (IL-1β) and the enzyme (AST) in saliva of (T2DM) patients suffering from gingivitis in comparison with chlorhexidine. Patients and Methods: A randomized controlled clinical trial on 45 (T2DM) patients, both sexes with moderate gingivitis, age 40-55 years, (Hb1Ac) < 7%. They were randomly assigned to 3 groups undergo scaling and polishing, (15) for each group, group 1 used chlorhexidine mouthwash (0.12%), group 2 used pomegranate peel extract (6.25%) and group 3 pomegranate peel extract (12.5%). Before and after 14 days, PI, GI, BOP, salivary IL-1β and AST were evaluated. Results: All the results for both biochemical and clinical parameters in the three groups showed significant reduction after 14 days of treatment except for the salivary IL-1β in group 1. No significant difference between group1 and group 2 except for PLI and group1 and group 3 except for IL-1β, while significant differences between group 2 and 3 after 14days of treatment except for the salivary AST, with no side effects associated with the use of pomegranate peel extract as a mouthwash at both concentrations. Conclusion: pomegranate peel extract could be considered more effective in treating gingivitis especially at the high concentration with no considerable side effects comparing to chlorhexidine.