Alhagi graecorum is used in the folk medicine and might be beneficial in certain medical conditions. Experiment was thus designed to evaluate the possible protective effect of Alhagi graecorum extract against the alloxan diabetic rats. Alhagi graecorum aqueous alcoholic extract was given orally to alloxan induced diabetic rats once a day for 4 weeks. Diabetes was assessed by elevation of blood glucose, lipids and liver malondialdehyde (MDA) levels as well as decrease of reduced glutathione (GSH) content, glutathione peroxidase (GPx) and catalase (CAT) activities. Administration of insulin or Alhagi graecorum reversed the deleterious effect induced by alloxan. In conclusion the extract of Alhagi graecorum may be useful in the controlling glucose and lipid levels, especially if oxidative stress is a part of its pathophysiology.