The present study was aimed to findout the potency of Tecoma stans as a hypoglycemic and hypolipidemic agent in diabetic condition. Ethanolic extract of Tecoma stans leaves were prepared, Total phenolic content was estimated by using Folin-Ciocalteu method and total flavonoid concentration was determined by aluminum chloride colorimetric assay. The experimental rats were divided into six groups. The Group-1, 2 and 3 were noraml control, diabetic and hypercholesterolemic control, respectively. Freshly prepared Streptozotocin solution in 0.9% saline was used to induce the Diabetes Mellitus (DM) by single intraperitoneal injection. Hypercholesterolemia was induced by giving cholesterol and cholic acid. Group-4, 5 and 6 were considered as diabetic, glibenclamide and hypercholesetelemic test rats, respectively. Group-4 and 5 were treated with ethanolix extract of Tecoma stans (EETS) and glibenclamide, respectively. Group-6 was treated with plant extract. Total cholesterol (TC), triglyceride (TG), HDL-cholesterol (HDL-C), LDL-cholesterol (LDL-C), VLDL cholesterol (VLDL-C), SGPT, SGOT and CRP were measured by using quantification kit. The study demonstrated that the plant extract showed significant (P<0.001) effect on lowering blood glucose level in diabetic rats. The extract also showed significant (P<0.001) effect in reducing TC, TG, LDL-C, and VLDL-C levels (P<0.001) and raised HDL-C (P<0.001) cholesterol during treatment. EETS might be used in the future as herbal medicine for the treatment of diabetes and cardiovascular disease (CVD) as it reduces the metabolic complications under diabetic condition