ABSTRACT The prevalence of diabetes mellitus is increasing with ageing of the population and life style changes associated with rapid urbanization and westernization. The aim of this study was to producing an inventory of Elytraria acaulis plant used by traditional healers in Adilabad district of Andhra Pradesh to treat diabetes. The stem, leaves, root and flowers of E. acaulis was collected from the local areas of Adilabad district, Andhra Pradesh, India. The powdered plant parts were successfully extracted with boiling water using soxhlet extractor. A preliminary toxicity study of E. acaulis crude extracts was done using seven main groups of male Wister albino rats. The antihyperglycemic activity of the crude aqueous extracts of E. acaulis different parts were studied in alloxan-induced diabetic rats, after oral administration at a dose of 250 mg/kg body weight for a period of 28 days. The toxicity study results showed that the medium lethal dose (LD50) of the extracts is higher than 1g/kg body weight. There is no significant level of reduction in fasting blood glucose level was noticed for the aqueous extracts of root and stem of E. acaulison. On chronic administration, the effect of E. acaulis flower and leaf causes a fall in fasting blood sugar of rats. A significant increase in the levels of cholesterol, and triglycerides were observed in diabetic rats when compared to normal control groups.