ABSTRACT:Very little knowledge about use of papaya leaves is available in the literature, the leaves of papaya are bitter to taste which explains its therapeutic benefits. The present study was undertaken to assess anti diabetic effects of leaves extracts of Carica Papaya and Glucophage on streptozotocin -induced diabetic mice. Results indicates that hyperglycemic level in diabetic mice was normalized after administration of various doses (50, 150 and 300 mg/kg bw) of ethanolic leaves extracts to diabetic mice. Similarly leaves extracts of C. Papaya have also shown pronounced effects on plasma insulin, triglyceride, cholesterol and HDL cholesterol levels. The levels of liver enzymes (ALT, AST and ALP), bilirubin and blood cells (Red cells, white cells and platelets) were improved on dose depended manner. Analysis of various leaves extracts for phytochemicals revealed presence of significant amount of alkaloids, steroid, tannins, total phenols and flavonoids. It is assumed that biologically active components of papaya leaf extracts are helpful in decreasing secondary complications of diabetes and improved insulin sensitivity to uptake glucose by cells. Which also indicates that these extracts might be good source of pharmaceutical materials need for preparation of various drugs required for human health.