Background: Diabetes mellitus is regarded as a serious chronic disease that carries a high risk for considerable complications. The use of natural plant products for management of diabetes is increasing due to their minimal side-effects and economical aspects. Aegle marmelos L. Correa (A. marmelos), family Rutaceae is highly reputed medicinal plant commonly known as bael. A. marmelos fruit is widely used in folk medicine for the treatment of diabetes mellitus. Aim of the work: This study was aimed to evaluate the antidiabetic and antioxidant activity of A. marmelos fruit ethanolic extract against alloxan-induced diabetes in male rats. Material and Methods: Twenty five male albino rats with an average body weight 180-195g were divided into two main groups; first group: control (n=5) and second group: diabetic rats (n=20), which were divided equally to four subgroups as follows: diabetic untreated rats , diabetic rats treated with 125 mg/kg/day A. marmelos fruit extract; diabetic rats treated with 250 mg/kg/day A. marmelos fruit extract and diabetic rats treated with 500 mg/kg/day A. marmelos fruit extract. Diabetes was induced by a single intraperitonial injection of alloxan (120 mg/kg). Results: Phytochemical screening of A. marmelos fruit extract revealed the presence of alkaloids, carbohydrates, glycosides, flavonoids, tannins, coumarins, sterols and triterpenoids. Results of the biological study reported that alloxan-induced diabetic group exhibited hyperglycemia, hyperlipidemia, elevation in malondialdehyde (MDA) level accompanied with weight loss and reduction in high density lipoprotein cholesterol (HDL-C) level, reduced glutathione (GSH) level and superoxide dismutase (SOD) enzyme activity when compared to control group. Treatment with A. marmelos fruit extract at the three dose levels reported improvement in the biological evaluation, lipid profile, glucose, insulin, MDA and GSH levels and SOD enzyme activity when compared to the diabetic group. The improvement was most pronounced in 500 mg/kg A.marmelos treated group. Conclusion: It could be concluded that A. marmelos fruit extract had hypoglycemic activity; this effect may be attributed to its antioxidant activity and its high content of active constituents which was proved in this study. Therefore, it could be recommended that A.marmelos fruit may be useful as a healthy food and in the development of antidiabetic drugs.