The aim of the present study is to exploring benzene, ethyl acetate and ethanol fraction of methanolic leaf extract of Stevia rebaudiana for antidiabetic activities in streptozotocin induced diabetic rats. The acute toxicity studies of different fractions showed that all fractions at the dose of 2000 mg/kg did not show any toxic effects. one day single dose study showed Ethyl Acetate Fraction (EAFSR) at dose of 200 and 400 mg/kg, p.o. decreased blood glucose level significantly (p<0.05) in diabetic rats. Three weeks repeated treatment with EAFSR at dose of 200 mg/kg, p.o. lowered blood glucose by 39% on day 21 as compared to control group and GLB Glibenclamide (500 μg/kg) lowered blood glucose by 52% in streptozotocin induced diabetic rats. Treatment with EAFSR exhibited significant changes of lipid profile in diabetic rats (p<0.05) TG, TC, Low Density Lipoprotein (LDL) and Very Low Density Lipoprotein (VLDL) reduced by 19%, 19%, 32% and 18% respectively whereas High Density Lipoprotein (HDL) was increased by 28%. Glyburide at dose of 0.25 mg/kg, p.o. decreased TG, TC, LDL and VLDL by 31%, 29%, 47% and 31% respectively and increased HDL by 40%. EAFSR and GLB treatments enhance insulin level by 68% and 53%, total protein increased by 24% and 25%, albumin decreased by 35% and 43%, urea decreased by 37% and 45%, total hemoglobin increased by 24% and 44%, glycosylated haemoglobin decreased by 41% and 52% and WBCs increased by 23% and 44% respectively. EAFSR seems to have GLB like potential and emerged as a potential candidate for management of diabetes mellitus.