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Traditional Medicines derived from medicinal plants are used by about 60% of the world’s population. This study focuses on Indian Herbal drugs and plants used in the treatment of diabetes   and their biological screening procedures. Diabetes is an important human ailment afflicting many from various walks of life in different countries. In India it is proving to be a major health problem, especially in the urban areas. A number of medicinal plants have proven antidiabetic and related beneficial effects and of herbal drugs used in treatment of diabetes is compiled. These include, Allium sativum, Eugenia jambolana, Momordica charantia,Ocimum sanctum, Phyllanthus amarus, Pterocarpus marsupium, Tinospora cordifolia, Trigonella foenum graecum and Withania somnifera. Despite considerable progress in the treatment of diabetes by oral hypoglycaemic agents, search for newer drugs continues because the existing synthetic drugs have several limitations. Appropriate experimental models are essential tools for understanding the pathogenesis, complications, and genetic or environmental influences that increase the risks of type 2 diabetes and testing of various therapeutic agents. The animal models of type 2 diabetes   can be obtained either spontaneously or induced by chemicals or dietary or surgical manipulations and/or by combination thereof. This article gives an overview on the animal models of type 2 diabetes with reference to their source, characteristic features, underlying principal and procedure to the investigators in diabetes research. Models For Insulin Dependent Diabetes Mellitus [IDDM] such as Alloxan induced diabetes, Streptozotocin induced diabetes, Virus induced diabetes, Insulin antibodies induced diabetes, Hormone induced diabetes have given broad spectrum for the evaluation of the anti-diabetic activity, each model act as essential tool for investigating genetic, endocrine, metabolic, morphologic changes and underlying aetiopathogenic mechanisms that could also operate during the evolution of type 2 diabetes in humans. Herbal drugs have values; but they need to go through clinical trials and then only they should be used. Otherwise they can be a menace.

Key words: Anti-diabetic activity, Herbal Drugs, Oral hypoglycaemic agents,  Streptozotocin, Alloxan.