Astragalus kurdicus Boiss. roots are used in folk medicine for antidiabetic purposes. Different metabolites of Astragalus plants have a notable potential in antidiabetic activity via differing mechanisms. Herewith this study designed to assess the antidiabetic activity of Astragalus kurdicus, utilizing a range of diabetes‐related in vitro methodologies and to investigate the chemical composition of the plant. According to the results of the activity tests, water extract (AKW) was the most active extract in PTP1B, DPP4, and α‐amylase inhibition tests (87.17%, 82.4%, 91.49% respectively at 1 mg/ml). Total extract, AKM (85.63%), showed the highest AGEs inhibition activity. To test possible improvement effects of the extracts on diabetes through gut‐microbiota, cell growth rates of three probiotic microorganisms were measured. AKM showed highest potential of prebiotic activity among tested extracts and caused higher biomass increase than standard prebiotics. Furthermore, flavonoid‐rich extract was found to be mostly responsible for the high antioxidant activity. The highest saponin and astragalosides content were seen in AKB extract in HPTLC analysis. Among the measured saponins, the abundance of Astragaloside IV (27.41 μg/mg in AKM) was the highest in all fractions. Thus, for the first time, the antidiabetic activity of A. kurdicus was evaluated from various perspectives.