Tulasi leaf powder was fed at the 1% level in normal and diabetic rats for a period of one month to explore the effect on fasting blood sugar, uronic acid, total amino acids, and the lipid profile in serum and tissue lipids. The results indicated a significant reduction in fasting blood sugar, uronic acid, total amino acids, total cholesterol, triglyceride, phospholipids and total lipids. In liver, total cholesterol, triglyceride and total lipids were significantly lowered. Total lipids were significantly reduced in kidney. In heart, a significant fall in total cholesterol and phospholipids was observed. All these observations indicate the hypoglycemic and hypolipidemic effect of Tulasi in diabetic rats.