Maesa indica belonging to family Myrsinaceae, commonly known as Atki is a large shrub. Ethnobotanical studies of Kolhapur district revealed that stem bark of M. indica is used in the treatment a diabetes. The literature survey revealed that there is no experimental evidence of antidiabetic effect of the plant. Therefore the present study was carried out to investigate antidiabetic effect of M. indica stem bark in streptozotocin induced diabetic rats. The Plant was subjected to pharmacognostic, physico-chemical and phytochemical evaluations which will assist in standardization for authenticity, quality and identification of the herbal products. Treatment with 2ml/kg stem bark distillate to diabetic rats resulted in significant reduction in blood glucose level. The preset study clearly demonstrated that the plant is having potential hypoglycemic activity which may be beneficial for the management and treatment of diabetes mellitus. It also shows good alpha glucosidase inhibition activity.