Diabetes mellitus (DM) is an onset metabolic illness in which hyperglycemia occurs due to acquired or inherited impaired insulin production and ineffective action. Diabetes is frequently managed with the use of drugs, which may have adverse consequences even though they are good at regulating blood glucose levels. Herbal remedies are therefore being investigated as a substitute because of their reduced toxicity and fewer adverse effects. Using alloxan-induced diabetic rats, this work intends to investigate the possible anti-diabetic and anti-hyperlipidemic effects of ethanolic and aqueous leaf extracts of Celtis tetrandra Roxb. The antidiabetic activity was tested in 35 rats with diabetes induced by a single alloxan injection (140 mg·kg−1). Diabetic rats with blood glucose level (BGL >180 mg/100 mL) were treated with extracts (100 and 200 mg·kg−1) and glibenclamide (5 mg·kg−1) as a standard drug, and fasting BGL, lipid profiles, body weight, and pancreatic histopathology were assessed. The result was analyzed using SPSS software by one-way ANOVA, followed by Tukey's post hoc test, with p < 0.05 being a statistically reliable result. The ethanolic and aqueous leaf extracts of C. tetrandra (100 and 200 mg·kg−1) significantly reduced BGL, with the 200 mg·kg−1 ethanolic extract showing the most notable effect at day 21st. Lipid profiles improved, and pancreatic histopathology revealed increased β-cell regeneration. The preliminary study supported the use of leaf extracts from C. tetrandra as an herbal remedy for hyperglycemia and maintaining a normal level of lipids.