The ${alpha}-glucosidase$ inhibitory and antioxidant effects of water chestnut (Trapa japonica Flerov.) were assessed to explore its possible use as an anti-diabetic agent. Methanol extracts of the fruit shell and meat of water chestnut were assayed for inhibitory activity against yeast ${alpha}-glucosidase$ and 1,1-diphenyl-2-picrylhydrazyl (DPPH) radical scavenging activity. Effect of fruit shell extract on postprandial glucose response was assessed. Compared with fruit meat, shell extract showed stronger inhibition against ${alpha}-glucosidase$ with an $IC_{50}$ of 273 ${mu}g/mL$. Oral administration of fruit shell extract (500 mg/kg) significantly lowered the postprandial area under the glucose response curve to starch (1 g/kg) in streptozotocin (STZ)-induced diabetic rats (p<0.01). Compared with fruit meat, shell extract showed stronger scavenging activity against DPPH, with an $IC_{50}$ of 27.1 ${mu}g/mL$. The results indicate that the fruit shell of water chestnut was effective in controlling postprandial hyperglycemia and exerted an antioxidant effect. Therefore, water chestnut may be useful in treating diabetes.