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Polyherbal formulation consists of alcoholic extract of leaves of Syzygium cumini, bark of Ficus glomerata and Flowers of Butea superba was investigated for its possible antidiabetic effect in alloxan-induced diabetic rats. The acute oral toxicity showed that the polyherbal formulation was safe until 5000mg/kg body weight and no macroscopical organ abnormalities were observed in acute oral models. Oral administration of 500mg/kg body wt. of aqueous solution of polyherbal formulation for 7 days exhibited significant reduction in blood glucose level in diabetic rats. A comparison was made between the action of prepared polyherbal formulation and a known antidiabetic drug glibenclamide 600µg/kg body wt. The antidiabetic effect of polyherbal formulation were nearly comparable than that observed with glibenclamide.