Background:Terminalia chebulaRetz., Family Combretaceae (T. chebula) is one of the important plants mentioned in Ayurveda, a traditional system of medicine. The present work was designed to study the effect of the aqueous extract ofT. chebulafruits in type 2 diabetic rats. Methods: The aqueous extract of the fruits was prepared by the double maceration technique. The extract was subjected to HPTLC analysis, which showed the presence of ellagic acid and gallic acid. Type 2 diabetes was induced in rats with a low dose of Streptozotocin (35 mg/kg) after administering a high-fat diet for fourteen days. Diabetic animals were treated with 500 and 1000 mg/kg of aqueous extract ofT. chebulafruits for six weeks. Results: Diabetic rats showed a significantly (511.7 ± 17.6) (p< 0.001) high plasma glucose level compared to the normal group (106 ± 3.358). TheT. chebulatreatment group showed a significant (p< 0.001) reduction in plasma glucose at 500 mg/kg (394.3 ± 10.35) and 1000 mg/kg (368.6 ± 30.08) doses when compared with the diabetic control group. Treatment with aqueous extract significantly reduced lipid parameters in diabetic animals when compared to the animals in the diabetic control group. Treatment with extract at a dose of 500 mg/kg and 1000 mg/kg showed a significant reduction in AST (p< 0.01,p< 0.001) when compared with diabetic control rats. Treatment with extract significantly reduced ALT at 500 mg/kg (p< 0.05) and 1000 mg/kg (p< 0.001) doses when compared with diabetic control rats. The extract treatment improved insulin sensitivity and insulin sensitivity index (ISI) and significantly decreased HOMR-IR. Treatment withT. chebulaaqueous extract at 1000 mg/kg significantly increased the level of GSH (p< 0.05) when compared to diabetic control rats.T. chebulatreatment at 1000 mg/kg significantly increased levels of CAT (p< 0.01). Histopathology of pancreatic tissue revealed that the extract has a protective effect against the damage caused by hyperglycemia. Immunohistochemistry of pancreatic tissue showed increased expression of SIRT1 in diabetic animals treated with the extract. Conclusions: The results of the present study indicate that the extract ofT. chebulahas significant effects in the management of type 2 diabetes.