Embelia ribes is extensively used in the traditional Indian system of medicine for treatment of various disorders. We herein investigated the antidiabetic effects of E. ribes ethanolic extract in high fat diet (HFD) and low dose streptozotocin (STZ)-induced type 2 diabetes in Wistar rats. HFD-fed and low dose STZ (35 mg kg −1 , i.p)-induced diabetic rats were treated with E. ribes extract (100 and 200 mg kg −1 day −1 ) or metformin (180 mg kg −1 day −1 ) for 21 days while continuing on HFD. Antihyperglycemic effects of E. ribes extract were demonstrated by significant reduction (p < 0.01) in fasting blood glucose, hepatic glucose-6-phosphatase activity and increased glycogen content, whereas insulin sensitizing effects were seen during oral glucose tolerance testing. In addition, it significantly (p < 0.01) restored the elevated systolic and diastolic blood pressure, reduced hepatic fatty degeneration, oxidative changes and the reversal of circulating levels of serum lipids, lipase, insulin, leptin and adiponectin towards normal in diabetic rats. These findings demonstrated the antidiabetic potential of E. ribes extract in HFD-fed and low dose STZ-treated diabetic rats. This may be associated with strong antioxidant potential and restoration of the serum levels of leptin, adiponectin, insulin and lipids.