Curcuma longa belongs to the family Zingiberaceae and can be found in the tropical and subtropical regions of the world. It is widely used in Asiatic countries, especially India and South East Asia where it is cultivated commercially as a condiment. Its rhizomes exhibit anti-inflammatory, anti-human immunodeficiency virus, anti-bacterial, antioxidant effects, nematocidal activities, antiproliferative and antiangiogenic activities and are of pharmaceutical importance. Another relevant medicinal property exhibited by it is antidiabetic property which is reviewed here. Studies on the efficacy of crude C.longa extracts against type 2 diabetes in murine models reveal that it demonstrates a hypoglycemic effect by lowering the blood glucose levels under in vivo conditions. Clinical studies have revealed the safety of curucmin (major principle component exhibiting pharmaceutical properties from C.longa) on humans but with very low bioavailability. In view of its effective hypoglycemic effect and its low bioavailability, further studies are needed for the characterization of the bioactive principles and formulating the development of C.longa extracts as a novel anti-diabetic therapeutic agent.