This study was designed to evaluate the antidiabetic effect of hydroalcoholic extract from Punica granatum peels in normal and streptozotocin-induced diabetic rats and its potent a-amylase inhibitory. Antidiabetic effect of this extract was investigated after oral administration at dose of 400 mg/kg b.w. In normal fasted rats, the test drug extract showed no hypoglycaemic effect but were found to be depressing the peak value of blood glucose after oral glucose tolerance (glucose 2.5 g/kg b.w.). After 2-weeks of daily treatment in streptozotocin-induced diabetic rats, plasma glucose levels were decreased after oral administration of hydroalcoholic extract from Punica granatum peels by 56% in the first week and 32.92% in the second week. However, this extract showed hypolipidemic effect (Total cholesterol and triglycerides) in streptozotocin-induced diabetic rats. In vitro, Punica granatum peels extract demonstrate a potent inhibitory effect on a- amylase activity (IC50=3.65 g/L) these finding strongly suggest that PGP extract improves postprandial hyperglycaemia, at least in part, by inhibiting alpha amylase activity.