Background: Gymnema sylvestre plant was widely used for medicinal purpose. The plant leaves were traditionally used to treat diabetes. Aim: To determine the antidiabetic and hypolipidemic activity of Gymnema sylvestre in dexamethasone induced insulin resistance in Albino rats. Objectives: The present study was undertaken to evaluate antidiabetic and hypolipidemic activity of Gymnema sylvestre leaf aqueous extract against dexamethasone induced insulin resistance in Albino rats. Materials and Methods: Animals were divided into five groups. Normal control and diabetic control group received gum acacia (2%) orally for 12days, and normal saline (i.p.), dexamethasone (8mg/kg/i.p.) from day 7- day12 respectively. Two test groups (Gymnema sylvestre leaf aqueous extract 2 and 4gm/kg/p.o./12days) and standard control received metformin (2gm/kg/p.o./12 days). The two test groups, standard control group received dexamethasone (8mg/kg/i.p) from day 7- day 12 respectively. The antidiabetic and hypolipidemic activity was estimated by measuring serum glucose, insulin, lipid levels and histopathological evaluation of liver tissue. Results were analyzed by using one way ANOVA followed by Scheffe’s multiple comparison test. Results: Treatment with aqueous extract of Gymnema sylvestre (2 and 4gm/kg/p.o) significantly (p<0.01) altered the elevated glucose, lipid, insulin levels and also improved the histopathology of liver in dexamethasone induced insulin resistance rats. Conclusion: Treatment with aqueous extract of Gymnema sylvestre improved the altered glucose, insulin and lipid profile in insulin resistance rats.