The study is aimed at development and evaluation of herbal suspensions (A-1, A-2, A-3, A-4, A-5, and A-6) for anti-diabetic potential in streptozotocin (STZ)-induced diabetic rats. The most stable formulations: A-3 at the doses of 125mg/kg BW/day and 250 mg/kg BW/day, and A-6 at the doses of 162.5 mg/kg BW/day and 325 mg/kg BW/day were evaluated for their anti-diabetic activity in STZ induced diabetic rats and also assessed for few diabetes-related complications by studying the biochemical parameters like total cholesterol, total protein, blood urea, serum glutamate oxaloacetate transaminase (SGOT) and serum glutamate pyruvate transaminase (SGPT), and the histopathology of the pancreas, kidney, liver and heart samples. Formulation A-6 (325 mg/kg) ameliorated diabetes by exhibiting a decrease in blood glucose level, total cholesterol, blood urea, SGOT, and SGPT; and an increase in body weight and total protein; by removing vacuolization and swelling of pancreatic islets in histopathological studies.