Cordia dichotoma Forst. has been used in the management of diabetes in traditional medicine. However, the antidiabetic activity of the methanolic extract of C. dichotoma (MECD) bark has not been reported so far. In this study, the antidiabetic activity of C. dichotoma was assessed in alloxan-induced diabetic Wistar rats. The acute toxicity study indicated that the MECD was safe up to the dose level of 2000 mg/kg body weight. In oral glucose tolerance (OGT) test, the pre-treatment of MECD showed partial protection from hyperglycemia induced by a glucose load (2 g/kg, body weight) in rats at the dose levels of 250 and 500 mg/kg, body weight. The MECD significantly reduced the blood glucose levels in the alloxan-induced diabetic rats at the dose levels of 250 & 500 mg/kg, body weight as compared to normal control animals. Analysis of biochemical parameters and histopathological investigations also demonstrated the antidiabetic potential of the MECD with significant improvement of biochemical parameters including body weight, serum lipid profile and antioxidant enzymes/biomarkers in comparison to the normal control. The activities of the MECD (500 mg/kg body weight) were comparable to some extent with that of the standard drug, glibenclamide (5 mg/kg). Our study scientifically validates the folkloric claim as well as traditional uses of C. dichotoma as antidiabetic medicine. It is suggested that the antidiabetic activity of C. dichotoma may be due to the presence of phenolic phytoconstituents or plant flavonoids in the methanolic bark extract.