Efficacy of Tinospora cordifolia (Willd.) stem extracts (both aqueous and alcoholic) in differ-ent dosages (200 and 400 mg/ kg b.w) on blood lipid profile in streptozotocin induced dia-betic albino rats was investigated in this study. The drug was administered orally for 10 days in 24 rats of 4 different groups treated with Tinospora cordifolia. Similarly, in another group of study consisting of 24 rats, the drug was administered orally for 30 days. Efficacy of Tinospora cordifolia in ameliorating the metabolic derangements in lipid metabolism caused by diabetes was compared with the Lante Zinc Insulin (6 Units / kg b.w. daily. i.p.) treated diabetic rats. Plasma total cholesterol, triglycerides, free fatty acids, phospholipids and lipoproteins like high density lipoprotein, low density lipoprotein and very low density lipoprotein -cholesterol levels were measured according to the standard biochemical meth-ods. Drug treated diabetic animals showed a significant (p< 0.05) effect of Tinospora cordifo-lia on all these parameters compared to untreated animals. Treatment with insulin restored all these altered parameters to near normal levels in diabetic animals. Our results indicated that Tinospora cordifolia stem extract is able to ameliorate the derangements in lipid me-tabolism caused by diabetes mellitus in streptozotocin induced diabetic rats towards normal level. Hence, this study may reveal the usefulness and beneficial value of herbal drug Tino-spora cordifolia in treating hyperlipidemia.