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The effect of oral administration of an aqueous extract of the bark of Helicteres isora was investigated on blood glucose and plasma antioxidant status in streptozotocin (STZ) induced diabetic rats. The study was also undertaken to evaluate the role of hepatic enzymes in experimental diabetes. Oral administration of a bark extract of Helicteres isora (100, 200 mg/kg) in STZ diabetic rats caused a significant increase in body weight, hepatic hexokinase activity and significant decrease in hepatic glucose-6-phosphatase, serum acid phosphatase (ACP), alkaline phosphatase (ALP) and lactate dehydrogenase (LDH). Based on these findings, we suggest that Helicteres isora possesses hypoglycemic and hepatoprotective activity and is able to ameliorate biochemical damage in STZ induced diabetic rats.