The objective of this study was to explore the scientific basis of traditional usage of Phyllanthus emblica as an anti-diabetic agent in hyperglycemic patients. Ethanolic extract of its dried fruits was analyzed both qualitatively and quantitatively for evaluation of phytochemical agents. Then its antioxidant and anti-diabetic activities were found. The results indicated the presence of carbohydrates, tannins, phenols, alkaloids, flavonoids, saponins, glycosides, amino acids and proteins in crude extract with phenolic and flavonoid contents observed as 9.9 mg/g equivalent of gallic acid and 100 mg/g equivalent of rutin, respectively. Free radical scavenging activity by plant extract was observed as 68±0.33 % as compared to rutin (58±1.15 %) at concentration 2.56 mg/ml. Similarly, in vivo studies indicated that Phyllanthus emblica 80 mg/kg significantly reduced the glucose level in diabetic rats up to 166 ± 0.7 mg/dl on day 8th at 8th h as compared to diabetic rats 380 ± 0.7 mg/dl. Similarly, it also reduced the weight in rats up to 274.11 ± 0.97 g as compared to 310.71 ± 0.57 g which was recorded before treatment. It was thus concluded that Phyllanthus emblica is a potent antioxidant and antidiabetic agent.