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Aloe Vera has been used medicinally throughout history by many different cultures. Many compounds have been found in the exudates of the Aloe Vera plant that have been used medically by humans. We have examined the pharmacological hypoglycemic action of Aloe Vera in diabetic rats. Aloe Vera 250mg/kg (single dose study) reduced glucose, cholesterol, triglycerides, urea, creatinine, and lipids after treatment for 24 hrs. In chronic study (multiple dose study) also Aloe Vera reduced creatinine, urea, lipids, triglycerides and glucose after 15days and significantly reduced glucose levels at 15th day in diabetic rats. In glucose tolerance test in diabetic rats with Aloe Vera 250 mg/kg demonstrated glucose levels were found significantly less compared to the control group. Aloe vera serves as an important alternative source in the management of diabetes mellitus involved in reducing increased blood glucose during diabetes which should be examined further by oral hypoglycemic therapy.