Objectives Terminalia catappa has shown potent antidiabetic activity in the past; however, the exact molecular mechanisms by which it acts have not been elucidated. This review aims at exploring several hypotheses which have been proposed to explain its mechanism of action, including reduction in oxidative stress, inflammation, angiogenesis, lipid profile correction and direct hypoglycaemic actions. Methods A thorough review of all the articles, research as well as reviews, available regarding the concerned topic was performed. MEDLINE databases were searched using keywords (and their combinations), such as T. catappa, renin oxidative stress, inflammation, angiogenesis, diabetic retinopathy, a-glucosidase and a-amylase, among several others. English-language articles were preferably selected. Key findings Apart from metabolic dysfunctions, several hyperglycaemiainduced pathological conditions come into scene as the after-effects of diabetes. These mainly include inflammation, oxidative stress, angiogenesis and lipid profile alteration, which ultimately result in vascular endothelial dysfunction, hepatic steatosis, lipid peroxidation and apoptosis of endothelial, hepatic and neuronal cells. Terminalia catappa effectively attenuates the progression of diabetic retinopathy and shows significant hypoglycaemic actions. The mechanisms behind these effects were explained. Conclusion Terminalia catappa may provide an effective natural product to treat hyperglycaemia and prevent subsequent diabetic complications.