Diabetes mellitus is the most common metabolic disorder characterized by the presence of hyperglycemia due to defective insulin secretion, defective insulin action or both. Traditional Medicines derived from medicinal plants are used by about 60% of the world’s population. We focus on herbal drugs and plants used in the treatment of diabetes. Diabetes is an important human ailment afflicting many from various walks of life in different countries. In Egypt it is proving to be a major health problem, especially in the urban areas. Though there are various approaches to reduce the ill effects of diabetes and its secondary complications, herbal formulations are preferred due to lesser side effects and low cost. A list of medicinal plants with proven antidiabetic and related beneficial effects and of herbal drugs used in treatment of diabetes is compiled. One of the etiologic factors implicated in the development of diabetes and its complications is the damage induced by free radicals and hence an antidiabetic compound with antioxidant properties would be more beneficial. Therefore information on antioxidant effects of these medicinal plants is also included.