Momordica dioica (M. dioica) is a gourd like blooming plant that is readily available in Bangladesh, requiring biological research to discover its therapeutic values. The goal of our research was to see if the ethanolic extract of this plant had any anti-hyperglycemic properties. Water, glibenclamide and M. dioica extracts were fed to Streptozocin induced type-2 diabetic rat models at a dose of 1.25 g/kg body weight (bw) for 28 days to see what kind of effects they had on serum glucose, insulin, liver glycogen and lipid contents. Except for the control group, all the groups followed a pattern of maintaining the body weight. The oral glucose tolerance test was observed to be improved in extract after 14 days of the experiment. When assessed with the control group, the M. dioica extract showed a significant (p = 0.0015) decrease in postprandial serum glucose level (M±SD, mmol/l, 13.23 ± 1.03 control Vs 11.47 ± 2.21 extract) at 120 min. The treatment of diabetic model rats with extract resulted in a 7% (p < 0.0001) reduction in serum cholesterol levels. While subsequent 28 days of treatment, insulin levels were found to be lowered in all groups (from 246.76 to 200.44 pg/dL; p < 0.0001 for standard and from 309.01 to 204.61 pg/dL; p < 0.0001 for sample). The results revealed that prolonged administration of M. dioica improved the glycemic and lipidemic state of type-2 diabetic rats, implying that more research is needed to identify the active ingredient (s).