ABSTRACT Objective:To investigate the antihyperglycemic and antihyperlipidemic properties of hydroalcoholic extract of fruits ofSapindus mukorossiGaerten and its beneficial effect on haematological parameters with histopathological analysis in streptozotocin induced diabetic rats.Methods:Sapindus mukorossifruits extract (250 and 500 mg/kg body weight) and standard drug glybenclamide (0.5mg/kg body weight) were administered to diabetic rats. Effect of extract on hyperglycemia, hyperlipidemia and hematological parameters was studied in diabetic rats. Histopathological changes in diabetic rat pancreas were also observed after extract and glybenclamide treatment.Results:Daily oral administration ofSapindus mukorossi fruits extract (250and500mg/kg body weight) and glybenclamide for 20 days showed beneficial effects on blood glucose level (P<0.01) and lipid level. The extract has a favorable effect on the histopathological changes of the pancreas in streptozotocin induced diabetes.Conclusions:These findings reveal that the hydroalcoholic extract ofSapindus mukorossi fruits extract possesses antihyperglycemic and antihyperlipidemic properties. In addition, the extract can prevent various complications of diabetes and improve some haematological parameters.