An investigation entitled "development of cookies incorporated with pomegranate seed powder and defatted soybean flour and evaluation of cookies for hypoglycaemic activity" was carried out through three systematically laid out experiments in the department of Post Harvest Technology, College of Horticulture, Bagalkot, Karnataka during the year 2018-19. Firstly, the proximate composition of pomegranate seed powder and defatted soybean flour was analyzed for moisture, protein, fat, ash, crude fibre, carbohydrate, calorific value and total phenol content. In the 1st experiment, cookies were prepared with pomegranate seed powder (PSP) and different proportions of defatted soybean flour (DSF). Among the different treatments T1 [100 % Refined wheat flour (RWF)], T2 [(70% RWF +5% PSP + 25% DSF], T3 [(65% RWF +10% PSP + 25% DSF] and T4 [(60 % RWF +15% PSP + 25% DSF] were found optimum by scoring maximum scores maximum sensory scores among 9 treatments. Cookies incorporated with PSP, PPP and DSF showed a significant reduction in serum glucose level and serum cholesterol level of streptozotocin-induced diabetic rats on the 21st day of the experiment.