The present study was designed to determine the effect of nutmeg and bay leaf in Alloxan diabetic rats. Forty-eight male albino rats weighing 140 -150 gm were randomly divided into two groups of six animals each. Group I (G1) was the negative control group, and Group II was injected with a single intra-cage dose of Alloxan: (150 mg/kg body weight) to induce diabetes. Group II was then randomly divided into seven sub-groups-G2, the Positive control group; G3, fed 2.5% nutmeg; G4, fed 5% nutmeg; G5, fed 2.5% bay leaf; and G6, G7 fed 2.5,5% mixture of nutmeg and bay leaf respectively, for four weeks. The results of the obtained data indicated that the tested natural herbs (P≤0.05) decreased blood glucose, serum VLDL and increased HDL compared to the positive control group. The tested natural herbs also improved liver and kidney functions. The results conclude that nutmeg and bay leaf contains several compounds that can improve hyperglycemic rats' adverse effects and inhibition.