Ethanolic extract of the roots of Chonemorpha fragrans, a traditionally used antidibetic plant was evaluated for its antihyperglycemic and antihyperlipidemic effect using streptozotocin-nicotinamide induced diabetic rat model. Oral glucose tolerance test with 2g/kg of glucose and normoglycemic studies were performed which showed a dose dependant decrease in sugar levels. The acute oral toxicity studies demonstrated the safety of the dose up to 2000mg/kg body weight. The diabetic rats were treated with ethanolic root extracts, at a dose of 200mg/kg and 400mg/kg based on the acute toxicity study. Standard groups were treated with Glibenclamide at a dose of 0.6mg/kg. Treatment was continued for 21 days and the weights of the rats and serum glucose levels were measured on 1 st ,7 th ,14 th and 21 st day. Other biochemical parameters like lipid profile, HbA1c, ALT, AST, serum creatinine, urea and total proteins were evaluated on the last day of the study. The results of the study have shown a significant difference between the initial and final fasting blood glucose levels of C. fragrans and glibenclamide treated diabetic rats. These results justifies the traditional claim of the usefulness of C. fragrans root extract in the treatment of type 2 D. mellitus.