An attempt was made to study the beneficial effects of Aloe vera (L.) Burm. fil. in streptozotocin-induced diabetic rats. In diabetic induced rats fed with A. vera (300 mg/kg body wt), the fasting plasma glucose levels were reduced to normal and body weight was found to be increased. In the pancreatic sections of diabetic rats fed with A. vera, the islets were comparable to normal rats. In liver, the changes caused after induction of diabetes are granular cytoplasm, dilated sinusoids, shrunken nuclei and inflammation, which was re duced after feeding with A. vera. Excess proliferation of epithelium in the small intestine was observed in diabetic rats, which was reduced after A. vera feeding. In diabetic rats and diabetic rats fed with A. vera, no change was noticed in the kidney and stomach.