Diabetes mellitus is among the major global public health problems and its prevalence is currently increasing at an alarming rate. According to the International Diabetes Federation, about 366 million people are living with diabetes and this figure is projected to increase to 552 million by the year 2030. The study investigated the effect of oral administration of aqueous extract of coconut oil on blood glucose, total protein, kidney function indices, liver function indices, and lipid profile levels in alloxan-induced diabetic rats. The aqueous extract was administered orally at a dose of 400mg/kg body weight to both normal and alloxan-induced diabetic rats. Twenty adult male rats were divided into four groups of five rats each, two groups were made diabetic and the other two groups were non diabetic. One of the diabetic groups was treated with the extract and the other serves as control. The alloxan was administered intraperitoneal at a dose of 120mg/kg per body weight. The administration of the extract lasted for 21 days. Effect of the extract on blood glucose, total protein, albumin, bilirubin, urea, creatinine, total cholesterol, triglyceride, and high density lipoprotein concentrations were analyzed. The toxic effect of the extract was determined using biochemical enzyme markers. Treatment with the extract showed significantly (p<0.05) reduction in elevated blood levels of glucose, cholesterol, and proteins and other biochemical parameters associated with alloxan-induced diabetic rats. The extract possesses no toxic effect as indicated by the lowering of ALP and ALT levels and may be used for the management of diabetes mellitus