The prevalence of diabetes is increasing worldwide. Changes in lipid metabolism are secondary to diabetes, which may become the cause of hypertension, atherosclerosis and other cardiovascular diseases. The present study was designed to investigate the effect of methanolic root extract of Rauwolfia serpentina (a known antihypertensive herb) on glucose, total cholesterol (TC), triglycerides (TG) and alanine aminotransferase (ALT). Alloxan-induced diabetic rats were divided in to 3 groups viz., group I: diabetic control treated with 5% dimethyl sulfoxide (DMSO) in distilled water (1 mL kg-1), group II (positive control): diabetic rats treated with known anti-diabetic drug chlorpropamide (20 mg kg-1) and group III (diabetic test): treated with methanolic root extract (30 mg kg-1). Glucose was estimated from each group at 0, 1, 2 and 4 h after intra-peritoneal injection of each treatment by using glucometer. Rats were decapitated at 4 h, blood was collected to separate the serum that used to analyze TC, TG and ALT. There was a significant decrease (p<0.0001) found in glucose level from 0 to 4 h (94-106 mg dL-1) in test rats as compared to diabetic control. Similarly, TG (p<0.01), TC and ALT (p<0.05) were also significantly decrease in test group. The methanolic root extract of R. serpentina was found hypoglycaemic, hypolipidemic and hepato-protective in alloxan-induced diabetic rats.