Brahmi was evaluated for its antioxidant and anti-d iabetic potential in streptozotocin-induced diabeti c rats and also the effect of diabetes on routine haematological pa rameters were determined. Streptozotocin-induced di abetic rats were treated with Brahmi (500 mg/kg b.w./day) for 3 0 days. The activities of catalase and superoxide d ismutase were reduced significantly (P < 0.05) while the lev els of lipid peroxidation, blood glucose and glycat ed haemoglobin were found to be significantly (P < 0.0 5) elevated in the diabetic rats. Significant (P < 0.05) reduction of haemoglobin levels, total white blood cell count and platelet count were observed in diabetic rats. These were normalized on treatment with Brahmi (500 mg/kg b.w. ) and were comparable with that of the glibenclamid e (600 μ g/kg b.w./day) treated rats. Present study shows t hat Brahmi possesses significant anti-hyperglycaemi c and antioxidant effects in streptozotocin-induced diabe tic rats