Our interest to develop an antidiabetic drug fromnatural sources prompted us to undertake a detailed study of the plant Xylocarpus granatum showing antidiabetic effect in the screening programme of our Institute. The ethanol extract of the plant and its chloroform fraction showed promising results in all the three (GLM, SLMand STZ)models. Further purification of chloroform fraction led to the isolation of a major compound gedunin and 3 other knwon compounds. All the compounds were bioassayed for antidiabetic and antidyslipidemic activities, onlyGedunin showed promising results in antidiabetic and antidyslipidemic activities. The results of gedunin only have been reported in this manuscript.