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Medicinal plants in most of societies have been a source of quality health care. The indigenous populations are getting many ethnomedicinal products form local biodiversity. The current study aimed to investigate anti-diabetic plants in 8 villages (Patriata, Surasi, Charhan, Lower toppa, Ghikagali, Kashmir point, Pindi point and Shawala) of rural Murree. The methodology included preparation of questionnaire, identification of plants and phytochemical analysis. The informants were asked about vernacular name, part used and folk recipe. The quantitative study included fidelity level, use value and relative frequency of citation of plant species. Data indicated that 30% of patients use local herbs to treat diabetes. The most significant plant species were Berberis lycium with use value of 0.50 followed by Melia azedarach with use value of 0.43 and Himalaiella heteromalla with use value of 0.33. Himalaiella heteromalla was selected for phytochemical analysis. Total flavonoid content was 7.25±0.08mg (ethanol extract) and 6.03±0.13mg (chloroform extract) quercetin equivalent/gm of extract; total phenolic content was 53.92±0.47mg (ethanol extract) and 72.75±0.48mg (chloroform extract) quercetin equivalent/gm of extract; total β–Carotene content was 29.7µg/g in ethanol extract, and 27.26µg/g in chloroform extract while total lycopene content was 46.33µg/g (ethanol extract) and 41.54µg/g (chloroform extract) in H. heteromalla. The results suggest that medicinal plants of Murree region may be potential natural resources for antidiabetic compounds. [ABSTRACT FROM AUTHOR]