The present study was carried out to evaluate the hypoglycemic and hypolipidemic activity of alcohol and aqueous root extracts of Erythrina variegata Linn. in alloxan induced diabetic rats. Diabetes was induced into albino Wistar rats by intraperitonial administration of alloxan. Blood samples were collected from overnight fasted normal and diabetic rats on 0th, 7th, 14th and 21st days of treatment. Hypoglycemic activity was evaluated by measuring serum glucose level and glycosylated haemoglobin level after dosing with aqueous and alcohol extracts. Hypolipidemic activity was evaluated by measuring various biochemical parameter like total cholesterol, triglycerides, low density lipoprotein, very low density lipoprotein, high density lipoprotein and phospholipids. The results showed that the extracts 300 mg/kg and 600 mg/kg significantly (P<0.001, p<0.01) reduced fasting blood glucose of alloxan diabetic rats in a dose-related manner, when compared to control and standard (anti-diabetic agent, glibenclamide 500μg/kg). Both the extracts also have a significant recovery in the levels of parameters measured in lipid profile, when compared to control and standard group. The present investigation established pharmacological evidence to support the folklore claim that it is an hypoglycemic and hypolipidemic agent.