The hypoglycaemic effect of aqueous leaf extract of Murraya koenigii was studied in normal and alloxan- induced diabetic rats. The extract was administered orally at 100 mg/Kg, 150 mg/Kg and 200 mg/Kg bodyweight each to respective groups of animals (Groups I, II and III) for seven days. Group IV received normal saline and served as control for the normal rats. For the alloxan-induced diabetic rats, the same dosage pattern was administered to three groups of rats for seven days (Groups V, VI and VII) while group VIII which received normal saline served as control. At the various dose levels administered, the glucose lowering effect was more pronounced in the alloxan-diabetic rats than in control rats. When compared with chlorpropamide, the glucose lowering effect of aqueous extract of Murraya koenigii was significantly (p <0.05) lower at the dose levels administered in both normal and alloxan-diabetic rats.