1. Effect of epinephrine on the increment index calculated from intravenous glucose tolerance tests and on hepatic glycogen before and after A. indica leaf extract treatment was studied in normal and streptozotocin-induced diabetic rabbits. 2. A. indica leaf extract, in itself, was found to have no action on peripheral utilization of glucose or on hepatic glycogen. 3. The reduction in peripheral utilization of glucose and glycogenolytic effect due to epinephrine action was blocked by A. indica leaf extract, however, almost completely in diabetic rabbits and to a certain extent in normal ones. 4. The results are discussed.