Virgin coconut oil (VCO) has been shown to possess insulinotropic effects shown in isolated perfused mouse islet with hypolipidemic effects. Hot extracted virgin coconut oil (HEVCO) has been shown to possess better antioxidant properties than cold extracted virgin coconut oil (CEVCO). These properties were exploited to study the anti-diabetic effects of HEVCO and CE-VCO in diabetic rats. Four groups 8 rats each, first group served as non-diabetic control remaining groups were made diabetic and force fed with 2 ml alcoholic extracts of commercial coconut oil (CCO), CEVCO and HEVCO for 21 days. Blood glucose once in 5 days, body weight gain, food intake once in a week and water intake and urine output daily, were monitored. Animals were sacrificed at the end of 21 days. The results indicated HEVCO reduced blood glucose and lipids viz total cholesterol (TC), triglycerides (TG), Low and Very Low Density Lipoprotein (LDL + VLDL) and thiobarbutyric acid reactive substances (TBARS) increased the antioxidant status by elevating activities of antioxidant enzymes such as superoxide dismutase (SOD), catalase, glutathione peroxidase (GSHPx), glutathione (GSH) concentration and decreased lipid peroxidation in liver than CEVCO. These beneficial effects may be attributed to increased polyphenolic and other antioxidants content present in HEVCO.