Phytotherapy has a promising future in the management of diabetes, considered to be less toxic and free from side effects as compared to the use of synthetic drugs. The aim of the present study was to assess the antidiabetic possible of orally administered aqueous extracts of Murraya koenigii (ML) and Olea europaea (OL) leaves (100 and 200 mg/kg doses), in streptozotocin (70 mg/kg) induced diabetic rats. Metformin was used as a standard drug. Blood glucose, cholesterol, triglycerides, creatinine levels and body weight were estimated. ML and OL administration showed significant decrease (p≥0.05) in cholesterol, triglyceride, and serum glucose levels (range 55.6%-64.6%) compared to the metformin (62.7%); however, there was no significant effect on body weight and serum creatinine. Our results suggest that both the ML and OL possess a potent antihyperglycemic and hypolipidemic effect, which may be due to the presence of antioxidants such as carbazole alkaloids and polyphenols.