Insulin-dependent and non-insulin dependent diabetes is a common and serious metabolic disorder throughout the world. These conditions lead to excess glucose in the blood due to production of insufficient amount of insulin or unable to use of insulin in the body cells. In the present study diabetes was induced by intra peritoneal administration of Alloxan (150mg/kg b.w) and ethanolic extract of Azadirachta indica leaves (500mg/kg bw) was orally administered for 28 days. Blood Glucose tests as well as SGPT, SGOT, ALP and Bilirubin levels were estimated. It was analysed that serum glucose levels as well as SGPT, SGOT, ALP and Bilirubin levels significantly decrease due to oral administration of ethanolic extract of Azadirachta indica leaves. This study suggests that Azadirachta indica possesses antidiabetic as well as hepatoprotective effects.