Aqueous leaf extract of L. speciosa (banaba) effectively decreased the blood glucose in streptozotocin-induced diabetic mice after 15th day of banaba exposure. Further, banaba leaf extract have the potential to inhibit lipid peroxidation and effectively intercept/neutralize reactive oxygen species such as super oxide, H2O2 and NO based free radicals. The aqueous banaba leaf extract (150 mg/kg bodyweight) duly reduced STZ generated reactive intermediates and radical species helping to regulate normal levels of antioxidative markers like superoxide dismutase, catalase, glutathione-S-transferase and reduced glutathione.