The objective of this study was to evaluate the antidiabetic effects of the aqueous extract derived from the Thai Abutilon indicum Sweet plant and to explore its effects on intestinal glucose absorption and insulin secretion. The authors hypothesized that the plasma glucose level could be reduced through the inhibition of glucose absorption and/or the enhancement of insulin secretion. Administration of the extract (0.5 and 1 g/kg body weight) in an oral glucose tolerance test led to a significant reduction in plasma glucose levels in 30 minutes after the administration in moderately diabetic rats, as compared with untreated rats (P < .05), and this was at a faster rate than the use of an antidiabetic drug, glibenclamide. The inhibition of glucose absorption through the small intestine was investigated using an everted intestinal sac. The results showed that the extract at concentrations of 0.156 to 5 mg/mL caused a reduction of glucose absorption in a dose response manner. The maximum response was noted at a dose of 2.5 mg/mL. The promotion of the extract on insulin secretion was confirmed by incubating beta cell of pancreatic islets and INS-1E insulinoma cells with the extract at 1 to 1000 microg/mL. These observations suggest that the aqueous extract from the A indicum plant has antidiabetic properties, which inhibited glucose absorption and stimulated insulin secretion. Phytochemical screening also revealed that the extract contained alkaloids, flavonoids, tannins, glycosides, and saponins that could account for the observed pharmacologic effects of the plant extract.