Oral administration of the methanol extract of the aerial parts of Artemisia pallens Wall. (used in Indian folk medicine for the treatment of diabetes mellitus) led to significant blood glucose lowering effect in glucose-fed hyperglycaemic and alloxan-induced diabetic rats. This effect of the extract was dose dependent and significant at 100 mg/kg level in glucose-fed rats. In fasted normal rats, the extract caused a moderate hypoglycaemic effect at a higher dose (1000 mg/kg). The water extract (1000 mg/kg) was inactive.