The objective of the study was to investigate the alpha glucosidase and Dipeptidyl peptidase IV (DPP-IV) inhibitory activity of aqueous extract of Desmodium gangeticum (D. gangeticum). α-d- Glucosidase from Saccharomyces cerevisiae was used as in vitro model to assess α-d-Glucosidase inhibitory activity of aqueous extract of D. gangeticum. In-vitro inhibitory effect of aqueous extract of D. gangeticum on DPP-IV enzyme was assessed by measuring the absorbance of reaction mixture at 405 nm using a microtiter plate reader. Results of the study demonstrated that aqueous extract of D. gangeticum exhibited good alpha glucosidase and DPP-IV inhibitory activity with an IC50 value of 950μg/ml and 255.5μg/ml respectively. The results of the study provide scientific support for the use of D. gangeticum in the traditional system of medicine for the treatment of Type-II diabetes. This study should help to explain the pharmacological mechanism of action and also help in the development of medicinal preparation for the treatment of Type-II diabetes.