The present study is aimed to investigate the antidiabetic and antiinflammatory activity of crude extracts (methanol and aqueous) of leaves of Pergularia daemia. The acute oral toxicity showed that the crude extracts of P. daemia leaf were safe until 2000 mg/kg body weight and no macroscopical organ abnormalities were observed in acute oral models. The results suggested methanol extract of leaves may contribute to the reduction of blood glucose levels and can be useful in the management of diabetes. The crude extracts were also assessed for its antiinflammatory activity by in-vitro methods. Out of the two extracts tested, the methanol extract exhibited significant activity. P. daemia extracts exhibited antidiabetic and antiinflammatory activities which may be attributed by the presence of active phytoconstituents.