Diabetes mellitus is a metabolic disorder which results due to chronic hyperglycemia associated with the imbalance in carbohydrate, fat and protein metabolism. Presently available several drugs reduce the hyperglycemia in diabetes mellitus; unfortunately these drugs have side effects. While, herbal drugs are mostly out of toxic or side effect than the chemical drug. Hence, the aim of the present study was designed to compare the possible therapeutic effects of Ipomea sepiaria leaves extracts against streptozotocin (stz) induced diabetic rats. The ethanolic extract of I. sepiaria was administered orally in an aqueous solution at a dose of 500mg/kg body wt. to diabetic rats. Serum glucose level and lipid profile were estimated after administration of the extracts. Applied doses did not cause any acute toxicity or behavioural changes. The blood glucose levels was significantly (P<0.001) reduced when compared to the streptozotocin (STZ) induced diabetic rats. The lipid profile such as Total Cholestol, Total Glycerides, Low Density Lipo proteins and Very Low Density Lipoproteins levels were significantly decreased in I. sepiaria treated diabetic animals. In contrast, High Density Lipoproteins levels were increased when compared to the Diabetic control rats. In conclusion, I. sepiaria leaves produced a significant hypoglycemic effect and also hypolipidemic activity at dose level of 500 mg/kg.