The aim of this study was to investigate the effects of methanolic extract of Diacure a Polyherbal Formulation for antihyperlipidemic effects in Streptozotocin induced diabetic rats. Its effect was compared with that of glibenclamide, a reference antidiabetic drug. White albino male rats were administered With Diacure a Polyherbal Formulation (100mg /kg body wt) orally for 30 days. At the end of 30 days, the serum lipid metabolites such as total cholesterol, triglycerides, HDL, LDL, free fatty acid, phospholipids and lipid peroxides were determined.In order to determine the HDL, LDL, fatty acid, Phospho lipid and lipase content in liver were estimated in control, Streptozotocin, extract treated and glibenclamide treated rats. Oral administration of Diacure a Polyherbal Formulation for 30 days resulted in significant reduction in blood glucose level, lipid profiles of serum and liver of plant treated rats where compared with untreated diabetic rats. The effects produced by the extract were comparable to that of glibenclamide. In conclusion the Diacure a Polyherbal Formulation showed significant antihyperglycemic and antihyperlipidaemic effect in Streptozotocin, induced diabetic rats.