The present study is aimed at finding the effect of B-20 drops, a homoeopathic formulation, instreptozotocin (STZ) induced diabetic rats. B-20 drops comprises of the constituents derived fromplants and other natural sources, and are generally prescribed by the homoeopathic physician, incases of hyperglycemia and diabetes. The elevated levels of fasting blood glucose and pancreaticlipid peroxides observed in rats treated with STZ were significantly reduced by the treatment ofB-20 drops. The reduced liver glycogen contents were also brought back to near normal level byB-20 drops treatment in STZ diabetic rats. STZ induced histopathological changes in pancreas andliver was also partially reversed by B-20 drops. The findings indicate that B-20 drops help inimproving the glycogen stores in the liver and prevents STZ induced damage through freeradicals by decreasing the pancreatic lipid peroxides levels.