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Abstract: This research studied the hypoglycaemic effect of aqueous leaf extract of Albizzia chevalieri in alloxan-induced diabetic albino rats, using activity-guided fractionation. Preliminary elucidation of the mechanism of hypoglycaemic activity was also studied. The crude aqueous leaf extract of the plant (100 mg kg-1 body weight) reduced blood glucose levels of both the diabetic and normal rats by about 30%. The hypoglycaemic agent(s) were fractionated in the hexane fraction of the aqueous extract and partitioned in the second elution fraction (H2) by column chromatography. Thin layer chromatography of H2 gave a single spot with water as the mobile phase. The preliminary results of the mechanism of action indicated that the extract did not affect the in vivo digestion of carbohydrate or intestinal absorption of glucose. It however caused significant (p<0.05) increase in the hepatic and extrahepatic glycogen store. Phytochemical screening of the crude extract indicated the presence of saponins, flavonoids, tannins, terpenes, steroids, balsams, glycosides and alkaloids. UV/visible spectral studies of H2 indicated a λmax of 320 nm. These results suggest that the hypoglycaemic effect of the extract is as a result of induction of glycogenesis.