Dyslipidemia is a major cause of cardiovascular complications in diabetes mellitus. This study was carried out to evaluate the modulatory effect of Terminalia catappa leaf extract on dyslipidemia in diabetic rats. Twenty-five (25) male wistar rats weighting 150-200 g were divided randomly into five groups with five rats each for the study. Group 1 was control administered 5 ml/kg body weight of distilled water orally. Group 2 was treated with aqueous leaf extract of T. catappa at 130 mg/kg body weight orally while Group 3 was diabetic group orally administered with distilled water, 5ml/kg body weight. Groups 4 and 5 were diabetic rats treated respectively with 130 mg/kg body weight of aqueous leaf extract of Terminalia catappa and subcutaneous administration of insulin, 0.75 U/Kg body weight. Diabetes was induced with alloxan; 150 mg/kg body weight. The results showed significant (p < 0.05) increase in TC, TG, HDL, LDL and VLDL in diabetic untreated group. These were all reduced significantly (p < 0.05) in the Terminalia catappa leaf extract treated group. There was significant (p< 0.05) reduction in Fasting blood glucose and increase in insulin levels. These changes were observed to be similar in diabetic insulin administered group. Therefore, the aqueous leaf extract of T. catappa modulates hyperglycemia induced dyslipidemia suggesting its potency in managing dyslipidemia in type 1 diabetes mellitus and may be used to ameliorate diabetes associated cardiovascular complications.