Objective: To explore the anti-hyperglycemic effect of fruit extract of Terminalia catappa (Indian almond), a potential medicine from plant origin in a diabetic rat model.Methods: Streptozotocin-induced chronic diabetic rat model was utilized in the study. Three doses of test drug, hydro-alcoholic fruit extract of Terminalia catappa in 20 mg/kg, 30 mg/kg and 40 mg/kg and a standard anti-diabetic drug, glibenclamide (10 mg/kg) was used. The study had a total of nine groups with eight animals in each group. Drugs were given orally every day for 12 w. Blood glucose, body weight and urine volume were measured weekly, glycosylated hemoglobin (HbA1c) was estimated at 12th week in all groups. Data for all parameters were analyzed using one-way ANOVA repeated measures followed by Mann-Whitney test.Results: Hydro-alcoholic fruit extract of T. catappa significantly decreased blood glucose, urine volume and increased body weight in a dose-dependent manner in diabetic rats. At 12th week, blood glucose level in control, diabetic control, glibenclamide, T. catappa (40 mg/kg) group was 96.25±2.05 mg/dl, 599.75±0.25 mg/dl, 248.25±11.45 mg/dl, 115.00±3.78 mg/dl respectively. Effect of T. catappa in 30 mg/kg and 40 mg/kg dose was significantly more than glibenclamide. At 12th week, HbA1c level in control, diabetic control, glibenclamide, T. catappa (40 mg/kg) was 2.94±0.33 mmol/l, 4.94±0.49 mmol/l, 3.61±0.28 mmol/l, 3.21±0.27 mmol/l. Treatment with T. catappa 30 mg/kg, 40 mg/kg and glibenclamide brought back the level of HbA1c to normal levels. The addition of glibenclamide to T. catappa (40 mg/kg) did not produce any additional effect on blood glucose and HbA1c levels compared to the effect of T. catappa (40 mg/kg) in diabetic rats.Conclusion: Terminalia catappa fruit extract exhibited a significant anti-hyperglycemic effect in diabetic rats and has a great potential to be used in diabetes.