Traditional plant healing for diabetes has shown a surging significance in the last few decades. Therefore, the purpose of this study was to evaluate the hypoglycemic effect of the aqueous extract of E.variegata bark in diabetic rats. Diabetes was induced in rats by intraperitoneal administration of 45 mg/kg of streptozotocin (STZ). The aqueous extract of E. variegata was administered in the range of 400 mg/kg body weight during the study period of 30 days. The diabetic rats showed an increase in levels of blood glucose and glycosylated haemoglobin (HbA1c) and a decrease in the levels of insulin and haemoglobin (Hb). Treatment with the aqueous extract of E. variegata significatly decreased blood glucose and HbA1c (p<0.05) in diabetic rats and increased the levels of insulin and Hb. The histology of pancreatic islet cells was normal in non-diabetic animals, whereas in diabetic treated rats, E. variegata helped islet rejuvenation manifested by preservation of cell size. This study showed that the aqueous extract of E. variegata exerted a hypoglycemic effect. In addition, the extract positively functions on pancreas and provide evidence for its traditional usage in the control of diabetes.