Abstract: Background and Objectives: In India and many other Asian countries, traditional medicinal plants are used for treatment of various diseases. Under the category, Mimosa pudica is used as a traditional medicine for the treatment of numerous diseases including diabetes. In recent time, diabetes has become much common disease perhaps due to changed life style. Therefore, in the present study, antidiabetic effect of Mimosa pudica seeds ethanolic extract and extract fractions (n-butanol, ethyl acetate and n-hexane) was investigated in vivo in Wistar rats. Antioxidant study was carried out using in vitro and in vivo models. Materials and Methods: The free radical (2,2-Diphenyl-1-picrylhydrazyl and nitric oxide) scavenging activity and total antioxidant (flavonoid and phenol) contents of the extracts were determined in vitro by spectrophotometric method. In the in vivo studies, 100, 200 and 400 mg kg–1 Mimosa pudica seeds ethanolic extract and 200 mg kg–1 of each extract fractions were administered to streptozotocin (60 mg kg–1) induced diabetic Wistar rats. Results: Mimosa pudica seed extracts possess moderate amount of antioxidants and scavenged 2,2-Diphenyl-1-picrylhydrazyl and nitric oxide free radicals. Mimosa pudica seed extracts also decreased fasting blood glucose level and lipid peroxidation (thiobarbituric acid reactive substances) and increased serum insulin, serum α-amylase and hepatic antioxidants (catalase and reduced glutathione) levels in 21 days treated diabetic rats. The ethyl acetate extract fraction scavenged 2,2-Diphenyl-1-picrylhydrazyl (65.41%) and nitric oxide (90.16%) radicals than the other extracts. The ethyl acetate extract fraction also exerted more antidiabetic activity and increased hepatic antioxidant levels than the other extracts and the untreated group. Conclusion: Mimosa pudica seeds exerted its antidiabetic effect by enhancing secretion of pancreatic insulin and α-amylase. Mimosa pudica seeds also possess antioxidant activity and therefore, can be employed in preventing hepatic damage associated with diabetes.