This study explores the anti-diabetic, insulin sensitizing and hypolipidemic activity of Coccinia indica (C.indica) leaf extract (ethanolic) in glucocorticoid induced insulin resistance (IR). A 12 day study with 5 groups of 30 male Wistar albino rats, with 6 rats in each was conducted. The rats in all the groups except group 1 received dexamethasone (8mg/kg/i.p.) from 7th to 12th day to induce IR. The groups 1 and 2 received 2% gum acacia orally for 12 days whereas the groups 3 & 4 received oral ethanolic extract of C.indica leaf in the dose of 1 and 2 gm/kg, respectively. The standard control (group 5) received metformin (1gm/kg) orally for 12 days. Fasting serum glucose, insulin and lipid levels were estimated at the beginning and end of the study. The insulin sensitivity indices (homeostatic model assessment of insulin resistance and sensitivity, fasting glucose to insulin ratio, hepatic & atherogenic indices) were calculated. The body weight was monitored on alternate days. The liver weight, volume and histopathology were also done. Compared to group 2 rats, the group’s 3 & 4 demonstrated significant(p<0.05) dose dependent lowering of serum glucose, insulin and lipids as well as lowered IR, improved insulin sensitivity and reduced hepatic steatosis. Additionally, group 2 rats had low body weight and hepatomegaly. This extract demonstrated significant anti-diabetic, hypolipidemic and insulin sensitizing activity. Hence it can be used as an effective alternative for treating type2 diabetes mellitus.