Diabetes is one of the most prevalent disease worldwide and is associated with one of the highest morbidities and mortality rates associated. Like the western and conventional medicines, Traditional Chinese medicine (TCM) has promising results in the ailment of diabetes and its associated complications. But still the use of TCM is refrained for further explorations due to inadequate knowledge of active pharmaceutical ingredient and its isolation. Thus, this review will highlight some of the key concepts and rational behind the therapeutic regimen of TCM aiming towards diabetes treatment. A detailed study of all the articles including research as well as reviews, which were available on the world wide web was performed. The review includes MEDLINE and EMBASE databases using keywords alone or in combinations, such as diabetes, diabetic complications, Chinese therapy, traditional chinese medicine, diabetic neuropathy, diabetic nephropathy, diabetic retinopathy, diabetic complications, α-amylase and several others. TCM collectively is an effective and comparatively safe in the treatment of diabetes mellitus and its associated complications. Significant results are seen in monotherapy and in combination therapy with current conventional drugs. The effects include controlling glycemic levels along with the mitigation of diabetes associated complications. Focus on clinical trials and further investigations might help in concluding TCM as one of the most effective and safe treatment therapies. TCM holds enormous potential by virtue of its mechanism of action by maintaining the homeostasis in the body and thereby exhibiting pharmacological action.