The present study was designed to investigate the hypoglycaemic and hypolipidaemic activitiesof Qurs-e-Ziabetus 16 (QZ-16) in Streptozotocin (STZ) induced diabetic rats. QZ-16, apolypharmaceutical herbomineral formulation developed on the principles of Unani medicine isused for non-insulin dependent diabetes mellitus (NIDDM). The elevated levels of fasting bloodglucose, serum levels of cholesterol, triglycerides and urea observed in rats treated with STZ (55mg/kg body wt.) were significantly reduced by the treatment of QZ-16 (240 mg/kg, p.o.) andgliclazide (30 mg/kg, p.o.). The reduced HDL cholesterol levels were also increased by the QZ-16and gliclazide treatments in the STZ induced diabetic rats. These data show that QZ-16 hashypoglycaemic, hypolipidaemic properties in STZ induced diabetic rats.