Objective: To explore the antidiabetic and the antidiarrhoeal effects of ethanolic extracts of Cynodon dactylon Pers. aerial parts (EECA) in Wistar rats. Methods: To assess the antidiabetic activity of EECA, oral glucose tolerance test (OGTT) model and alloxan induced diabetic test (AIDT) model were performed. The EECA was used at the doses of 2 g/kg, 1 g/kg and 500 mg/kg body weight in OGTT model and 1.5 g/kg was used for AIDT model. Castor oil-induced diarrhoeal model and gastrointestinal motility test with barium sulphate milk model were performed for evaluating the antidiarrhoeal effects at doses of 1 g/kg, 750 mg/kg respectively. Results: The dose 2 g/kg in OGTT and 1.5 g/kg in AIDT model blood glucose levels decreased significantly (P < 0.01) in Wistar rats that showed antidiabetic effect of EECA. After administration of EECA at the dose of 1 g/kg, the extract showed significant (P < 0.05) antidiarrhoeal activity in castor oil-induced diarrhoeal model. The results were also significant (P < 0.05) in barium sulphate milk model for the same dose by using above mentioned animals. Conclusions: It is concluded that EECA contains both antidiabetic and the antidiarrhoeal properties.