Caesalpinia bonduc (Lin.) Roxb. widely distributed throughout the coastal region of India and used ethnically by the tribal people of India for controlling blood sugar. So present study was undertaken to rectify the traditional claim of the Caesalpinia bonduc (L.) Roxb. seeds in treatment of type 2 diabetes mellitus in Wistar Albino male rats and in future to use the extract in development of polyherbal formulations for treatment of diabetes. This study also includes biochemical examination of blood serum along with histopathological studies of pancreas, kidney and liver in diabetic control, extract treated and standard drug glibenclamide treated rats. Powder microscopy and preliminary phytochemical screening also done. Effect of hydroalcoholic extracts of Caesalpinia bonduc (L.) Roxb. seeds on fasting blood glucose level in normal, glucose loaded and alloxan induced hyperglycemic rats were evaluated and compared with that of reference drug, glibenclamide. The blood glucose was measured using one touch glucometer (Bayer), while histology of pancreas, kidney and liver was investigated after staining with heamatoxylin- eosin dye in normal, diabetic control, extract treated and standard drug glibenclamide treated rats. The extract at all tested doses (250mg and 500mg /kg of b.w.) significantly (p<0.05) lowered fasting blood glucose level in the treated rats compared with the diabetic but untreated rats (test control). The pancreas, kidney and liver histology indicates significant recovery with the extract administration. The efficacy of the extract in reducing blood glucose level, improving body weight and rejuvenating the damaged pancreas of alloxan induced diabetic rats favorably compared with that of reference drug, glibenclamide. Morphological and anatomical studies of the seed will enable to identify the crude drug. Preliminary phytochemical screening of hydro-alcoholic extract of seeds showed presence of flavonoids, triterpenoids and steroids.