Lipids play a vital role in the pathogenesis of diabetes mellitus. The elevated serum lipids represent the risk factor for coronary heart disease in diabetes mellitus patients. Aim& objective: To evaluate the hypoglycemic, hypolipidemic properties of Aloe vera. Methods: Normal euglycemic rats were treated with distilled water, Aloe vera 150 and 300mg/kg body weight. Diabetic rats (streptozotocin 50 mg/kg intraperitoneum) in groups were treated with distilled water (control), Aloe vera extract (150mg and 300mg/kg) and standard drugs. Blood samples were collected and analysed for blood glucose, lipid profile on day 0, 8, 15, and 22. Results: Aloe vera (300mg/kg) produced significant reduction (p < 0.001) in blood glucose as well as on lipid profile only in diabetic rats at the end of treatment. Conclusion: Aloe vera has significant lipid lowering effect and could be useful in diabetes.