Objective: Comparative screening of Polyherbal preparations for anti-diabetic and antioxidant activity in rats. Materials and Methods: The blood glucose lowering activity of the Polyherbal preparation 1and 2 was studied in normal rats and alloxan-induced diabetic rats after oral administration at doses of 1.0 ml/kg body wt. Blood samples were collected from the tail vein method on 1,7, 15, and 23rd day. Biochemical parameters like SGOT, SGPT, Liver Glycogen, Urea, Creatinine, LDL, Cholesterol etc were evaluated. Effect was also observed on antioxidant activity and learning and memory dysfunction in diabetes. The data was compared statistically using the one-way ANOVA method followed by the Dunnett test. Results: The Polyherbal preparation 1and 2 produced significant (P<0.05,0.01) reduction in the blood glucose level and other biochemical parameters in diabetic rats after 23 days of study compared with that of control and Metformin. They also have significant antioxidant activity effective in diabetic neuropathy and learning and memory dysfunction. Conclusion: The Polyherbal preparation 1 and 2 showed antidiabetic in diabetic rats. This preparation can be used as an alternative to anti-diabetic preparation. However, it requires further extensive molecular level studies for identifying mechanism of actions.