Diabetes mellitus (DM) is one of the most prevalent, fatal, and non‐contagious diseases. Therefore, researchers are making attempts to develop novel anti‐diabetic drugs using various organic compounds and biomolecules. The idea of using nano‐materials as anti‐diabetic agents seems interesting. The current study aims to develop Kickxia elatine (KE) extract‐based nano‐silver (KE‐AgNPs) and to evaluate their in vivo anti‐diabetic potency in female Sprague Dawley rats. KE‐AgNPs were characterized using UV spectroscopy, X‐ray diffractometer (XRD), scanning electron microscopy (SEM), Electron Diffraction X‐ray Spectroscopy (EDX), and Fourier transforms infrared (FTIR) techniques. The crystalline nature of KE‐AgNPs with a size of 42.47 nm is confirmed by XRD screening. Spherical‐shaped mono‐dispersed KE‐AgNPs with a mean size of 50 nm are validated by SEM examination. The different phyto‐compounds (tannins, alkaloids, flavonoids, proteins, saponins, phenols, carbohydrates, quinones, sterols, fats, and oils) that contribute to the stabilization and reduction of KE‐AgNPs are confirmed by FTIR analysis. EDX showed a strong peak (3.2 keV) that identified Ag as the main component with a 61.67% contribution. The use of Alloxan to induce diabetes resulted in elevated levels of blood sugar, HbA1c, liver, and lipid profile, as well as a drastic reduction in body weight, body organ weight, and Hemoglobin. These modifications were switched following 21 days of treatment of diabetic rats, and a dosage range of 150–450 mg kg−1 BW of KE extract and KE‐AgNPs demonstrated significant inhibition as compared with the diabetic untreated group. The phytochemical analysis of the KE plant was also assessed to examine the phyto‐compounds involved in the anti‐diabetic potential of KE extract and KE‐AgNPs. These findings suggested that, in comparison with the KE extract, KE‐AgNPs have demonstrated promising anti‐diabetic action.