Abstract: A study was undertaken to evaluate the anti-hyperglycemic and anti-hyperlipidemic activity of ethanolic and aqueous extract of Cynodon dactylon (Linn), respectively. The various parameters studied included fasting blood sugar levels, serum lipid levels, total hemoglobin and glycosylated hemoglobin in diabetic and normal rats. Streptozotocin was used to induce diabetes. Treatment with the extract at single dose levels showed a significant increase in the liver glycogen and a significant decrease in fasting blood glucose and glycosylated hemoglobin levels. The total cholesterol and serum triglycerides levels were also significantly reduced and the HDL cholesterol levels were significantly increased upon treatment with the extract thus proving the potent anti-diabetic and modify effect of anti-hyperlipidemic property of the plant. Present results clearly indicate that Cynodon dactylon (Linn), has potent for anti-hyperglycemic effects in Streptozotocin induced diabetic rats.