Abstract: Diabetes mellitus is a chronic disorder of carbohydrate metabolism whose prevalence is raising globally, especially the resource -starved countries such as Nigeria. Since antiquity, diabetes has been treated with plant medicines. Several investigations have confirmed the efficacy of many of these traditional preparations, some of which have proven efficacy. In the present study, the hypoglycemic, antioxidant and hepatoprotective effects of Allium cepa (A.cepa) aqueous extracts on alloxan-induced diabetic rabbits was investigated. Diabetes mellitus was induced in 15 adult male rabbits, using 200 mg kg-1 of alloxan monohydrate as a single intraperitoneal injection. These alloxan -diabetic rabbits were then divided into three groups; one group was administered aqueous extract of A. cepa 100 mg Kg-1 b.wt. orally daily for 30 days, another group received A. Cepa 300 mg kg-1 b.wt. orally daily for 30 days and the last group of diabetic rabbits received peanut oil (the vehicle) instead of A. cepa to serve as the diabetic control. There were also five rabbits which received neither alloxan nor A. cepa (the negative control group). All the liver histological derangements caused by diabetes were attenuated in the A. cepa-treated group. Increasing dosages of A. cepa aqueous extract produced a dose-dependent significant reduction in the blood glucose levels. Additionally, A. cepa remarkably improved the reduction of antioxidant parameters-Superoxide dismutase, catalase (SOD), catalase (CAT) Glutathione Peroxidase (GPx) , Reduced Glutathione (GSH) and increased malondialdehyde (MDA), a product of lipid peroxidation. It is concluded based on these findings that A. cepa may be effective in ameliorating diabetic’s related hepatotoxicity and alterations of biochemical parameters.