The present study is aimed at finding the effect of B-20 drops, a homoeopathic formulation, in streptozotocin (STZ) induced diabetic rats. B-20 drops comprises of the constituents derived from plants and other natural sources, and are generally prescribed by the homoeopathic physician, in cases of hyperglycemia and diabetes. The elevated levels of fasting blood glucose and pancreatic lipid peroxides observed in rats treated with STZ were significantly reduced by the treatment of B-20 drops. The reduced liver glycogen contents were also brought back to near normal level by B-20 drops treatment in STZ diabetic rats. STZ induced histopathological changes in pancreas and liver was also partially reversed by B-20 drops. The findings indicate that B-20 drops help in improving the glycogen stores in the liver and prevents STZ induced damage through free radicals by decreasing the pancreatic lipid peroxides levels.