The aim of the current study was to evaluate the anti-diabetic effects of twenty-one herbal formulations (PRI-1) against streptozotocin-induced diabetic rats.  Thirty two rats were fed standard diet and divided into four groups. Rats in the first and second group were normal and diabetic controls respectively. Rats in the second and third group were received 8 ml of aqueous extract of Ayurvedic formulations extracted from 100 gm “PRI-1” powder twice a day for 21- day. The fourth group rats were treated with allopathic drug, glibenclamide for control.  All the biochemical estimations such as glucose, triglyceride, cholesterol were done at two different intervals, one after the induction of diabetes and second after completion of (21 day),  therapy.  The present study concluded that herbal formulation “PRI-1” is beneficial in improving glucose and lipid homeostasis in type 2 diabetes and helps to protect against oxidative stress.