Effect of ethanol (ASE) and water (ASW) extracts of Argyreia speciosa on blood glucose and lipid profile was investigated in normoglycemic and Streptozotocin (STZ)-induced diabetic animals. In oral glucose and sucrose tolerance test, treatment with ASE and ASW (100 and 200 mg/kg) and Glidenclamide (10 mg/kg) significantly improved the glucose and sucrose tolerance in normal animals. In addition, respective treatment for fifteen-day resulted in significant percentage reduction in serum glucose (SG) ie., 30.39% (lower dose of ASE) and 33.21% (higher dose of ASW). In standardized STZ (50 mg/kg, iv)-induced diabetic rats, a single dose of ASE and ASW treatment exhibited reduction in SG levels at different time intervals compared to basal levels. Administration of both the doses of ASE and ASW for fifteen-day days exhibited greater percentage reduction in glycemia (24.6%, 24.7%, 23.9% and 21.9% respectively) and also ameliorated restored to near normal value of all tested lipid parameters. Further, treatment also exhibited significantly improved glucose tolerance over the period of 120 min compared to diabetic control group. Eventhough treatment failed to increase serum insulin levels significantly but peripheral utilization of insulin was increased as evident by insulin tolerance test. Taken together, present study supports the traditional usage of title plant in the treatment of diabetes mellitus.