Purpose: To evaluate the antidiabetic effect of p‐anisic acid (p‐AA) against type 2 diabetes mellitus (T2DM). Methods: Thirty‐six male rats were utilized for the study. The animals were provided with the high‐fat diet (HFD) and T2DM was induced through 35 mg/kg streptozotocin (STZ). Subsequently, the animals were allocated to 6 groups and subjected to the treatments for 4 weeks followed by a 2‐week observation. Three treatment groups were administered with p‐AA (25 mg/kg, 50 mg/kg or 100 mg/kg). Glibenclamide (3 mg/kg) was provided to the standard control group. The normal control and disease control groups were supplied with 0.1 % carboxymethyl cellulose (CMC). Subsequently, the effects of treatment on body weight (BW), blood glucose level (BGL), glycosylated haemoglobin (HbA1c), insulin, and lipid parameters were measured and the pancreas was isolated for histopathology. Results: A statistically significant (P‐value<0.001) increase in BW was observed in the p‐AA (50 mg/kg and 100 mg/kg) groups. The BGL decreased significantly (P‐value<0.001) in p‐AA groups. p‐AA significantly (P‐value<0.001) regulated the levels of HbA1c and serum insulin and lipid parameters. A notable improvement in the morphology of the pancreas was observed. Conclusion: Treatment with p‐AA exhibited significant antidiabetic effects against STZ‐HFD‐induced T2DM.