Hesperetin is a flavanoid commonly found in many herbal medicines and food. The antidiabetic effect of hesperetin was determined. The animals were divided into six groups such as normal, diabetic untreated, diabetic treated with (20mg hesperetin/kgbw in saline), diabetic treated with (40mg hesperetin/kgbw in saline), normal rat treated with 40mg of hesperetin/kgbw in saline) and diabetic treated with reference drug Glibenclamide (1mg/kgbw in saline). Nine-week-old adult male albino rats of Wistar albino strain, weighing 120-150 g were acclimatized for one week at air conditioned room (25± 1°C) and relative humidity (55%) in a 12-hour light/dark cycle in a room under hygienic condition. The experiment is carried out for 45 days. After 45days, the rats were fasted for 12hr, anaesthetized and sacrificed by cervical decapitation. Blood samples were collected by and various biochemical parameters were measured using auto analyser. The levels of plasma glucose, insulin, blood haemoglobin and glycosylated haemoglobin were determined. The level of lipid profiles was also determined. Histopathology of pancreas was also determined. Our experimental findings with respect to the mechanism of action of synthetic compound in Streptozotocin induced diabetic rats suggest that it enhances insulin secretion by the islets of langerhans and enhances glucose utilization.