Solanum nigrum, a medicinal plant, traditionally used in treating diabetes mellitus. In this study, we used the leaf extract of the plant to synthesize silver nanoparticles (AgNPs), as a proposition to treat alloxaninduced diabetic rats. The phytosynthesised AgNPs were analyzed using UV-visible and Fourier transform infra-red spectroscopy for their functional groups. Transmission electron microscopy revealed that, the synthesized particles are found to be 4-25 nm in size. Monodispersed and spherical nature of synthesized AgNPs were shown by scanning electron microscope and the presence of Ag in the AgNPs was confirmed by energy dispersive spectrum. The phytosynthesised AgNPs were evaluated for its antidiabetic activity in alloxan-induced diabetic rats. AgNPs-treated diabetic rats found to be significantly improved the dyslipidemic condition as seen in the diabetic control. Furthermore, it also reduced the blood glucose level over the period of treatment. The improvement in body weight was also found to be evidence for S. nigrum extract-mediated AgNPs as a potential antidiabetic agent against alloxaninduced diabetic rats.