This study used the hydrodistillation method to extract essential oil from Cannabis sativa (C.sativa) leaves, while its chemical composition was examined through gas chromatography-mass spectrometry. Experiments were conducted on alloxan-induced hyperglycemic rabbits (albino), with metformin as the reference medication for comparative analysis to evaluate its potential in managing diabetes. Chemical analysis showed that the principal components of C.sativa essential oil were caryophyllene (46.63%), d-limonene (7.123%) and cis-β-farnescene (9.115%), humulene (13.153%) and trans-αbergamotene (6.592%). The minor components (˂5%) include α-pinene (3.720%), β-myrcene (1.910%), cineole (2.340%), valencene (1.614%), β-bisabolene (1.897%) and unidentified components (4.201-4.452%) were respectively. Intraperitoneal administration of C. sativa oil (0.7, 0.9 and 1.2µl/kg b.wt.) to hyperglycemia for 14 days resulted in a noteworthy decrease in both hepatic and fasting blood glucose levels. Meanwhile, there was a marked increase in the hepatic concentration of glycogen. The oil administration exhibited a reduced yet favourable anti-hyperglycemic potential compared to the reference antidiabetic drug. The study's findings indicate that the essential oil derived from C. sativa leaves cultivated in Pakistan is characterized as a Beta Caryophyllene chemotype. Remarkably, the oil demonstrated significant efficacy in lowering glucose levels and showed promise in mitigating hyperglycemia-induced dyslipidemic complications in rabbits induced with alloxan.