Present study is based on the investigation of antioxidant and antihyperglycemic effect of methanolic extract from areal parts of Otostigea aucheri (OA). 2,2-Diphenyl-1 -picrylhydrazyl (DPPH) method was used to measure the antioxidant activity of extract of the species Otostigea aucheri. The observed scavenging activity for the free radicals was significant and it was compared with the standard BHT inhibition method. The IC50 value obtained of methanolic extract was 2.23 microg/mL. The methanolic extract of OA on the blood glucose level was further studied in normal (non-diabetic), streptozotocin (STZ)-induced type I and type II diabetic male Long-Evans rats at postprandial glucose load state. The results revealed that the oral administration of methanolic extract (1.25 g/kg) of OA showed no remarkable hypoglycemic effect in normal and type 1 (IDDM) diabetic rats. However, the methanolic extract significantly lowered (p < 0.005) serum glucose level in type II diabetic (NIDDM) models when simultaneous glucose was administered. This screening for antioxidant activity interprets the pernicious effects of diabetes that have been associated with mediation through the oxidation stress. The study also suggests to introduce natural source of the potential orally active antioxidant and active antihyperglycemic phytochemicals for the future. It may also improve the impaired antioxidant defense system.