This study was designed to investigate the anti diabetic activity of the methanolic extract of the whole plant of Mollugo pentaphylla (MEMP) in streptozotocin (STZ) induced diabetic rats. The qualitative chemical tests carried out for the identification of the phyto-constituents present in methanolic extract of Mollugo pentaphylla showed the presence of alkaloids, steroids, glycosides, saponins, terpenoids, phenolic compounds, flavonoids, and tannins. All the groups of animals were administered STZ at a dose of 150 mg/kg b. w.i.p. only once before the treatment. It was observed that the blood glucose levels was significantly (p> 0.01) increased. The animals with a glucose level of more than 200 mg/dl were considered for the experiment. The MEMP at a dose of 200 mg and 400 mg/kg b.w. was administered for 8 days. The effect of MEMP extract on blood glucose level was measured on every 4th day during the treatment. At the same time interval the relative changes in body weights, food and liquid intake were noted. Significant decrease (p< 0.01) in blood glucose level were observed in MEMP treated animals. The effect of MEMP was found to be similar to that of the standard, glibenclamide at a dose 2 mg/kg, b. w. The results clearly indicate that the methanolic extract of Mollugo pentaphylla (MEMP) exhibit significant blood glucose lowering activity in STZ induced diabetic rats.