To assess the effect of Portieria hornemannii and Spyridia fusiformis methanol extract for its anti-hyperglycemic activity against chemically induced diabetic rats by examining its influence on parameters such as blood sugar level, liver Glucokinase and Hexokinase activity, Glucose 6 phosphate activity, glycogen content. The methanolic residue of P. hornemannii and S. fusiformis at a dosage of 200 mg/kg of weight was given orally to Alloxon induced diabetic animals for about 28 days. The outcome of algae residue feeding in rats estimated by various biochemical as well as haematological parameters such as RBC, WBC, HB and platelets. Histopathological evaluation was made in the pancreas. The rats, pretreated with methanol residue of the above algal materials (200 mg/kg i.p) enhanced oral glucose tolerance against control. After feeding of methanol extract in diabetic rats for 28 days, the blood glucose has significantly decreased, while the increase in liver glycogen level was observed. In addition, the regeneration of the pancreas of the treated animals was noticed. The methanol residues of the experimental red algae P. hornemannii as well as S. fusiformis possess very effective hypoglycemic effect on the chemically induced diabetic rats compared to Glipizide