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Ethnomedicinal surveys have documented the traditional use of Carallia brachiata (Lour.) Merill (Rhizophoraceae) leaves in the management of diabetes mellitus in the Northeastern region of India. This study screens the hydro-alcoholic extract (HAE) of C. brachiata leaves for antioxidant and antidiabetic activities. The HAE was prepared using ethanol:water (7:3) by cold maceration method. The antidiabetic activity of HAE was evaluated in vivo in streptozotocin-induced diabetic rats at the doses of 250 or 500 mg/kg body weight for 21 days. The extract was also evaluated for in vitro and in vivo antioxidant activity. Results revealed that HAE of C. brachiata leaves possesses good hypoglycemic activity in diabetic rats. The hypoglycemic activity of HAE was found significant as compared to normal rats. Results of antioxidant activity were found statistically significant compared to standard drugs, quercetin and gallic acid. Results indicated a possible role of the HAE of C. brachiata leaves as herbal antioxidants in the prevention and/or treatment of oxidative stress-induced diabetes. Results suggested that antioxidant plant phenolics/flavonoids might be responsible for the antidiabetic efficacy of HAE. Further research can be undertaken on the HAE of C. brachiata leaves for exploration of biochemical mechanisms of antidiabetic action with the isolation of bioactive flavonoids having antidiabetic potential. [ABSTRACT FROM AUTHOR]