Diabetes mellitus has become a serious threat to public health throughout the world and there is a growing focus on the importance of medicinal plants and traditional health systems in treating the ailment. Medicinal herbs have been used by people for longer than we have been keeping written record and many studies have confirmed the benefits of these herbs with hypoglycemic effects in the management of diabetes. Herbal formulations are getting more importance in the treatment of diabetes because of their significant therapeutic effect, lesser side effects and cost effectiveness. This monograph emphasized the importance and utility of the herbs with potential anti-diabetic activity in the management of diabetes, based on the physiological mechanisms of the malady. All the drugs discussed in this monograph have exhibited significant pharmacological activity and hold definite promises in the management of Diabetes mellitus.