The hypoglycemic and antihyperglycemic activity of methanolic extract of Pluchea indica Less.(Asteraceae) (MEPI) leaves were studied in normal rats and in streptozotocin induced diabeticrats respectively. The blood glucose levels were measured at 1, 4, 8, 16 and 24 h intervals after thetreatment. The MEPI leaves showed reduction in blood glucose level in normal (35.12% and36.01% for 200 and 400 mg/kg, p.o. respectively) and in steptozotocin induced diabetic rats(36.10% and 41.87% for 200 and 400 mg/kg respectively). A toxicity study has been performed forthe extract, which revealed that the extract is safe to use even at the doses of 3.2 gm/kg of bodyweight orally.