Background: Aloe barbadensis miller (commonly known as Aloe vera) is widely used in traditional medicine. The leaf gel of Aloe barbadensis miller has shown hypoglycemic activity in Alloxan and STZ induced diabetic rats. There are few controversial reports which do not support its hypoglycemic activity. The present study was designed to compare the anti hyperglycemic activity of ethanolic extract of fresh leaf gel of Aloe barbadensis miller with standard glibenclamide and metformin in Streptozotocin induced diabetic rats. Materials and Methods: Albino rats were divided into six groups of six animals each. In five groups diabetes was induced by using streptozotocin (50 mg/kg i.p.). Group I __ampersandsignndash; Normal control; Group II - Diabetic control; Group III __ampersandsignndash; Diabetic + glibenclamide (5mg/kg); Group IV __ampersandsignndash; Diabetic + metformin (10mg/kg); Group V __ampersandsignndash; Diabetic + Aloe barbadensis miller fresh leaf gel ethanolic extract (300mg/kg); Group VI __ampersandsignndash; Diabetic + Aloe barbadensis miller fresh leaf gel ethanolic extract (500mg/kg). All drugs were given once daily. Blood glucose was estimated from rat tail vein using glucometer before start of experiment and on day 1, 3, 7, 21, 28, 35 and at the end of 42 days. Oral glucose tolerance test (3gm/kg) was performed after 42 days in each group. Results: Fresh leaf gel ethanolic extract of Aloe barbadensis miller produced significant reduction in fasting blood glucose levels in both test groups. At the end of 42 days mean reduction in fasting blood glucose level was 44% and 73% in Group V (300mg/kg) and Group VI (500mg/kg) respectively. Conclusion: The result of present study indicates that Aloe barbadensis miller has significant hypoglycemic effect as compared to standard drug glibenclamide and metformin in STZ induced diabetic rats.