Objective: The primary objective of the present research work was to investigate the effect of ethanol and aqueous extract of Cassia auriculata in streptozotocin induced neonatal model of Non-Insulin Dependent Diabetes Mellitus (NIDDM). Methodology: The ethanol extract of whole plant powder of Cassia auriculata was obtained by successive solvent extraction with petroleum ether (60-80°C) and ethanol (95%v/v). The aqueous extract was obtained by boiling plant material in distilled water and concentrated by evaporation. The rats were divided into 4 groups as diabetic treated and two groups maintained as control and diabetic control, each group contained six rats. The ethanol (400mg/kg) and aqueous extract (250mg/kg, 500mg/kg) of the Cassia auriculata administered orally to streptozotocin induced diabetic rats once a day and evaluated for hypoglycemic activity. The blood glucose, triglyceride, HDL cholesterol and total cholesterol were studied in streptozotocin induced neonatal diabetic rat model. Results: Cassia auriculata ethanol extract at dose of 400 mg/kg whereas aqueous extract at doses 250 and 500 mg/kg of their body weight were administered to diabetic rats for 28 days, lead to suppression in elevated glucose, cholesterol and triglycerides levels.The glibenclamide (0.45mg/kg) was used as reference standard. Conclusion: From the results obtained, it can be observed that ethanol and aqueous extract of Cassia auriculata have antidiabetic potential. The findings indicate that the Cassia auricualata possess the hypoglycernic as well as the antihyperlipidemic activity.