Introduction: Incidence of diabetes is on rise worldwide as well as in India. Due to adverse drug reactions from currently available medications, herbal medications have become an emerging area of research. Thus, we aimed to study the anti-diabetic activity of polyherbal preparations of Murraya koenigii and Ocimum sanctum extracts. Material methods: Alloxan induced experimental animals were examined for anti-diabetic behaviour for polyherbal extracts in comparison to Glibenclamide. Acute toxicity, biochemical, physiological and histopathological parameters were studies and observations were noted and compared. Result: The standard group shows significant decrease in blood glucose levels, which indicates hypoglycemic effect of glibenclamide. Similar results are seen in groups Test I and Test II, after alloxan administration, suggesting hypoglycemic effect of Ocimum sanctum and Murraya koenigii methanolic extracts. Favourable effects of herbal medicines on post glucose load blood glucose level, diet and body weight were also comparable to glibenclamide. The polyherbal preparation showed hypoglycemic potential by improving blood glucose profile in diabetic rats with statistical significance p< 0.001. Conclusion: Polyherbal preparation of Murraya koenigii and Ocimum sanctum in 1:1 ratio has significant antidiabetic activity.