The present study was designed to investigate the hypoglycaemic and hypolipidaemic activities of Qurs-e-Ziabetus 16 (QZ-16) in Streptozotocin (STZ) induced diabetic rats. QZ-16, a polypharmaceutical herbomineral formulation developed on the principles of Unani medicine is used for non-insulin dependent diabetes mellitus (NIDDM). The elevated levels of fasting blood glucose, serum levels of cholesterol, triglycerides and urea observed in rats treated with STZ (55 mg/kg body wt.) were significantly reduced by the treatment of QZ-16 (240 mg/kg, p.o.) and gliclazide (30 mg/kg, p.o.). The reduced HDL cholesterol levels were also increased by the QZ-16 and gliclazide treatments in the STZ induced diabetic rats. These data show that QZ-16 has hypoglycaemic, hypolipidaemic properties in STZ induced diabetic rats.