Caralluma quadrangula extract is widely used by different ethnic group of the world for a long time for the treatment of diseases like diabetes, wounds, cuts, hepatoprotective, etc. white albino rats were rendered diabetic by intraperitoneal administration of alloxan (150 mg/kg body weight). The male albino rats were grouped into eight groups of six animals per group. Daily orally treatment with the extract for 15 days significantly reduced blood glucose, glycosylated haemoglobin (HbA1C), triglycerides, total cholesterol, low density lipoprotein and very low density lipoproteinalso insulin, blood urea and high density lipoprotein (HDL) found to be improved (p>0.05) as compared to diabetic control group. It is concluded that Caralluma quadrangular extract has significant anti-diabetic and hypolipidemic effect.