Diabetes mellitus is a metabolic disorder which results due to chronic hyperglycemia associated with the imbalance in carbohydrate, fat and protein metabolism. Presently available several drugs reduce the hyperglycemia in diabetes mellitus; unfortunately these drugs have side effects. While, herbal drugs are mostly out of toxic or side effect than the chemical drug. Hence, the aim of the present study was designed to compare the possible therapeutic effects of Channa punctatus bile content against Alloxan induced diabetic rats. The Bile content of Channa punctatus was administered orally in an aqueous solution at a dose of 5ml/kg body wt. to diabetic rats. Applied doses did not cause any acute toxicity or behavioural changes. The blood glucose levels was significantly (P<0.05) reduced when compared to the alloxan induced diabetic rats. In conclusion, Channa punctatus bile content produced a significant hypoglycemic effect and also hypolipidemic activity at dose level of 5ml/kg.