The objective of the current study was to evaluate the potential of Punica granatum L peel in mice as an antidiarrheal and antidiabetic agent. In an antidiarrheal study, different doses (50, 100, 150, and 200 mg/kg) of methanolic pomegranate peel extract (PPE) were administrated to castor oil-induced (1 mL/kg) diarrheal mice. Mice administered loperamide hydrochloride (3 mg/kg) were treated as a baseline group. During the experiment, electrolyte and hematological levels were analyzed, and at the end, histopathology of the intestine was performed. For antidiabetic activity, PPE doses (50, 100, 150, and 200 mg/kg) and metformin hydrochloride were administered to alloxan-induced (150 mg/kg) diabetic mice groups, and biochemical and hematological parameters were analyzed. Liver histopathology was done at the end of the experiment. The study found that castor oil caused diarrhea and had a significant (p < 0.05) impact on hematological parameters and electrolyte levels, compared with negative control group. PPE helped to restore altered parameters to normal levels. Histopathology of positive control group revealed abnormal cell structures, with irregularly arranged villi, unclear mucosal architecture of the ileal section, and nuclei cells were damaged and prone to collapsing. Significant dose-dependent recovery was observed in PPE-fed mice groups. After inducing and confirmation of diabetes with alloxan, all groups, except the negative control group, had significantly high glucose levels (p < 0.05). Levels of C-reactive protein and bilirubin were significantly altered, but PPE and metformin hydrochloride showed potential to improve these parameters. In positive control group mice, liver histology showed microvesicular fatty changes throughout the acinus, reactive Kupffer cells, mid-portal inflammation, reduced portal triad, centrilobular visibility, and well-differentiated central vein with well-formed nuclei. Similarly, significant dose-dependent recovery was observed in PPE-administrated mice groups. These results demonstrated that PPE had promising antidiarrheal and antidiabetic potential.