Eriosema psoraleoides is a plant used in ethnomedicine in the South East of Nigeria to manage conditions related to diabetes. The present research work is aimed at investigating the antidiabetic potentials of the leaves of this plant. The plant was collected in Nsukka, Nigeria, and authenticated by a taxonomist. Phytochemical screening was carried out on the leaves of the plant using standard procedures. The acute toxicity was tested using the Lorke’s method. Extraction was carried out successively with n-hexane, ethylacetate and 80% aq. Methanol, by maceration. In vivo tests were carried out on alloxan-induced diabetic male Wistar rats, using these three extracts for 14 days. Glibenclamide, 4mg/kg body weight was used as positive control. Statistical analysis was carried out using standard error of the mean and student’s t-test. Blood glucose measurements were done with a glucometer. Phytochemical results showed the presence of tannins, flavonoids, steroids, anthraquinones, and reducing sugars. In the toxicity test no deaths were recorded even at 5000mg/kg body weight of the rats. In the acute antidiabetic test no significant reduction in blood glucose levels were recorded for any of the extracts in the first 180 minutes on day 1. In the chronic test, the n-hexane and ethylacetate extracts demonstrated significant (p<0.05) reductions in blood glucose levels up to 77.5%, and 75.3%, on the 14th day, respectively, compared to 79.3% for Glibenclamide. The biochemical results show the plant has antihyperlipidaemic, hepatic and renal protective effects. Our results tend to justify the use of this plant in ethnomedicine.