The present study was aimed to identify the anti-diabetic effect of Borreria hispida (BH) on streptozotocin-induced diabetic rats. Acute toxicity of BH was studied according to the guidelines of OECD- 423. The preliminary screening method was done by using an oral glucose tolerance test (OGTT). Diabetes was induced in rats by intraperitoneal injection of streptozotocin (60 mg/kg). After induction of diabetes, rats were treated with methanolic extracts of Borreria hispida Linn (MEBH) (200 and 400 mg/kg p.o., respectively) and Glibenclamide 600 µg/kg for 28 days. Blood was collected by puncturing retro-orbital plexus and serum was analyzed for biochemical parameters MEBH caused significant reduction in elevated blood glucose levels in diabetic rats. Histopathological study revealed that regeneration of pancreatic β cells in the MEBH-treated animals. Based on the results, MEBH showed significant anti-diabetic effect against streptozotocin-induced diabetes rats.