Abstract: The present study was carried out to evaluate antidiabetic and hypolipidemic activities of Callistemon lanceolatus ethyl acetate and hexane fractions of dichloromethane extracts in streptozotocin and streptozotocin-nicotinamide induced diabetic wistar rat by administering graded oral doses (200 and 400 mg kg-1 b.wt.) for 21 days. Daily oral treatment with for 3 weeks resulted in significantly reduction in blood glucose, serum cholesterol (p<0.05) and triglycerides whereas HDL-cholesterol and serum insulin levels were found to be improved (p<0.05) as compared to diabetic control group. Present results indicate that ethyl acetate and hexane fractions have prominent antidiabetic effect at dose 400 mg kg-1 b.wt. in experimental diabetes and can therefore be used as an alternative remedy for the treatment of diabetes mellitus and its complications. In conclusion, the present study demonstrated that C. lanceolatus could be useful in management of type -1 and 2 diabetes associated with abnormalities in lipid profiles. The study needs to be validated in human volunteers to claim for its further usage in human volunteers and further studies are required to identify the active constituents.