The lipid lowering and antioxidant potential of ethanolic extract of Zingiber officinale Roscoe (family, Zingiberaceae) was evaluated in streptozotocin (STZ)-induced diabetes in rats. Ethanolic extract of Zingiber officinale (200 mg/kg) fed orally for 20 days produced, significant antihyperglycaemic effect (P < 0.01) in diabetic rats. Further, the extract treatment also lowered serum total cholesterol, triglycerides and increased the HDL-cholesterol levels when compared with pathogenic diabetic rats (P < 0.01). STZ-treatment also induced a statistically significant increase in liver and pancreas lipid peroxide levels (P < 0.01) as compared to normal healthy control rats. Zingiber officinale extract treatment lowered the liver and pancreas thiobarbituric acid reactive substances (TBARS) values (P < 0.01) as compared to pathogenic diabetic rats. The results of test drug were comparable to gliclazide (25 mg/kg, orally), a standard antihyperglycaemic agent. The results indicate that ethanolic extract of Zingiber officinale Roscoe can protect the tissues from lipid peroxidation. The extract also exhibit significant lipid lowering activity in diabetic rats. The present study is the first pilot study to assess the potential of Zingiber officinale in diabetic dyslipidaemia.