Diabetes is a widely prevalent metabolic disorders which requires very prompt management. Like the efficacy of herbal products in other disorders, antidiabetic potency also has been observed in many plant products. Acacia catechu, also known as Katha, has been used since many years by the local healers to treat diabetic patients. This study has been conducted to prove the efficacy of antidiabetic effect of ethyl acetate extract of Acacia catechu in both normal and diabetic albino rats. The extract shows significant antidiabetic activity in both normal and diabetes induced rats. The presence of flavonoids, glycoside, terpenoids may be responsible for the effect.