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Background: Type 2 diabetes mellitus is the most common type of diabetes. Diabetes mellitus is a leading cause of morbidity and mortality among Indian population and all over the world with more than hundreds of millions of patients worldwide. Pterocarpus marsupium is a medicinal plant used in Ayurvedic system of medicine to control blood sugar and strong antidiabetic. The purpose of this study was to assess the hypoglycemic effect of the ethanolic extract of Pterocarpus marsupium seeds in diabetic rats.Methods: The present work was designed to evaluate the anti-hyperglycaemic activity of Pterocarpus marsupium seed extract (100 mg/kg and 200 mg/kg) on gabapentin induced hyperglycaemia in wistar albino rats. Blood glucose level, serum triglycerides, total cholesterol, HDL cholesterol and LDL cholesterol were evaluated in gabapentin induced diabetic rats. The results of the test drug were compared with the standard drug.Results: Ethanolic seed extract of Pterocarpus marsupium at 100 mg/kg and 200 mg/kg had significantly reduced the blood glucose level compared to disease control rats on day 1, 7, 14 and 21. Pterocarpus marsupium shows significant decrease in triglycerides levels, serum cholesterol levels, LDL levels and increased HDL levels, total protein levels compared to the disease control group.Conclusions: In conclusion, the present study shows that the ethanolic seed extract of Pterocarpus marsupium has potential antidiabetic action in gabapentin induced diabetic rats and the effect was found to be more similar to the standard drug metformin.