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OBJECTIVE: To find out the hypoglycemic activity of Ficus hispida Linn. (bark) in normal and diabetic albino rats and to evaluate its probable mechanism of hypoglycemic activity if any. MATERIAL AND METHODS: Albino rats were divided into groups (n=6) receiving different treatments consisting of vehicle, water-soluble portion of the ethanol extract of Ficus hispida bark (FH) (1.25 g/kg) and standard antidiabetic drugs, glibenclamide (0.5 mg/kg) and 0.24 units of insulin (0.62 ml of 0.40 units/ml). Blood glucose was estimated by the glucose oxidase method in both normal and alloxan-induced diabetic rats before and 2 h after the administration of drugs. To find out the probable mechanism of action of FH as a hypoglycemic agent, i) the glycogen content of the liver, skeletal muscle and cardiac muscle, and ii) glucose uptake by isolated rat hemi-diaphragm were estimated. RESULTS: FH showed significant reduction of blood glucose level both in the normal (P<0.01) and diabetic (P<0.001) rats. However, the reduction in the blood glucose level was less than that of the standard drug, glibenclamide. FH also increased the uptake of glucose by rat hemi-diaphragm significantly (P<0.001). There was a significant increase in the glycogen content of the liver (P<0.05), skeletal muscle (P<0.01) and cardiac muscle (P<0.001). The amount of glycogen present in the cardiac muscle was more than the glycogen present in the skeletal muscle and liver. CONCLUSION: FH has significant hypoglycemic activity. Increased glycogenesis and enhanced peripheral uptake of glucose are the probable mechanisms involved in its hypoglycemic activity.