This study was designed to investigate the antidiabetic effects of the aqueous ethanolic extract of Adiantum incisum Forssk. whole plant (AE-AI) in order to validate the folkloric claim. Methods: Streptozotocin (STZ) was used to induce type 2 diabetes mellitus (TII DM) in male Sprague−Dawley rats. STZ-induced diabetic rats were later treated orally with either AE-AI (125, 250, and 500 mg/kg) or glibenclamide for 35 days. Blood glucose levels were measured weekly and on day 35, animals were sacrificed, and blood samples and tissues were harvested for subsequent antioxidant and histopathological analyses. AE-AI was also analyzed in vitro for phytochemical, antioxidant, and α-amylase inhibitory assays. Results: The phytochemical screening of AE-AI confirmed the presence of essential bioactive compounds like cardiac glycosides, flavonoids, phenolic compounds, saponins, and fixed oils. AE-AI demonstrated abundant amounts of total phenolic and flavonoid contents and displayed prominent antioxidant activity as assessed via DPPH, phosphomolybdate, and nitric oxide scavenging assays. AE-AI treatment also showed α-amylase inhibitory activity comparable to acarbose. In addition, AE-AI treatment exhibited a wide margin of safety in rats and dosedependently reduced STZ-induced blood glucose levels. Moreover, AE-AI increased the levels of GSH, SOD, catalase, and reduced MDA, and therefore prevented pathological effects of STZ on the kidney, liver, and pancreas. The blood glucose regulatory effect and antioxidant activity of AE-AI also aided in normalizing TII DM-mediated dyslipidemias. GC-MS analysis also demonstrated several potential antidiabetic phytoconstituents in AE-AI. Conclusion: These findings reveal that AE-AI possesses certain pharmacologically active compounds that can effectively treat STZ-induced TII DM owing to its antioxidant and α-amylase inhibitory potentials.