Hyperlipidemia is associated with diabetes and hepatotoxicity has emerged as a common clinical complication by antidiabetics. The present study was conducted to determine the antihyperlipidemic and hepatoprotective activity of Dodonaea viscosa leaves extracts in the alloxan-induced diabetic rabbits. The rabbits (n = 70) were divided into seven groups including normal and diabetic control, the remaining were aqueous, aqueous:methanol (70:30), aqueous:methanol (50:50), aqueous: methanol (30:70), and methanol extracts given for 30 days. Serum levels of triglycerides, total cholesterol, LDL-cholesterol, HDL-cholesterol, ALT and AST were estimated by using commercially available kits. The oral administration of aqueous:methanol (70:30) extract of the Dodonaea viscosa leaves significantly (P<0.01) decreased the raised parameters (triglyceride, total cholesterol and LDL-cholesterol) to normal values. But the extract has significantly increased HDL-cholesterol, ALT and AST levels. For the aqueous:methanol (70:30) extract given animals, the average serum level of total cholesterol was 60.00±1.30 mg/dL, LDL-cholesterol was 92.80±2.29 mg/dL, HDL-cholesterol was 31.80±1.0 mg/dL and triglyceride was 15.40±0.75 mg/dL while the average serum levels of ALT and AST were 45.60±3.08 and 27.20±1.36 IU/dL, respectively. It is concluded from the study that aqueous:methanolic (70:30) extract of Dodonaea viscosa leaves exerts antihy- perlipidemic and hepatoprotective effects in the alloxan-induced diabetic rabbits.