For management and treatment of diabetes several medicinal plants are used worldwide as well as these are being utilized customarily for the management of diabetes in human. The current study explored Stevia (Stevia rebaudiana) and gurmar (Gymnema Sylvestre) to determine their hypoglycemic activity compared to the standard drug metformin. Streptozotocin was used to induce diabetes in rats (55 mg/kg) intraperitoneal. For a time period of 60 days stevia (100mg/kg), gurmar (500mg/kg), and their combination (500mg/kg) was administered orally as well as metformin at the rate of 800μg/kg after 2 weeks of STZ injection. Hypoglycemic effects were shown best in combined stevia-gurmar extract than the individual doses of stevia and gurmar. (OGTT) oral glucose tolerance test and measurement of blood glucose levels were assessed. Reduction in body weight by STZ was also found to increase in all rats except stevia treatment. In conclusion, the extracts of stevia and gurmar showed hypoglycemic effect as well as improving body weight effects in diabetic rats. Therefore, it can be suggested that stevia as well as gurmar extracts have a potential in preventing diabetes and can be used as antidiabetics in herbal medicine.