The main objective of the present study was to investigate the hematological andÂ hepatoprotective activities of aqueous extract of Phyllanthus amarus in streptozotocinÂ (STZ) induced diabetic rats. The male Wistar albino rats were randomly divided in to fourÂ groups of 10 animals each: Control group (C), PA-treated control group (C+PA), DiabeticÂ control group (D), PA treated diabetic group (D+PA). Diabetes was induced by intraperitonealÂ injection of STZ (55 mg/kg/bwt) and after ascertaining, the diabetic rats were treatedÂ with aqueous extract of Phyllanthus amarus for 60 days. The biochemical estimations likeÂ hematological parameters, transaminases and antioxidant potential of the hepatic tissue wereÂ performed. The altered hematological parameters like hemoglobin concentration, red bloodÂ cells, mean cell volume, packed cell volume, mean cell hemoglobin and mean cell hemoglobinÂ concentration (11.1, 7.6, 12.9, 20, 3.6 and 11.2%) in D-group were restored to normalÂ level by the co-administration of Phyllanthus amarus aqueous extract (PAAEt) at 200Â mg/kg bw to diabetic rats. The activities of hepatic transaminases viz., glutamate pyruvateÂ transaminase, glutamate oxaloacetate transaminase increased significantly while the activitiesÂ of hepatic antioxidant enzymes such as glutathione peroxidase, glutathione-Stransferase,Â glutathione reductase, superoxide dismutase and catalase decreased significantlyÂ (p<0.05) and depletion of reduced glutathione illustrates increased lipid peroxidationÂ (107.13%) which were restored to control level in D+PA group. In conclusion, our resultsÂ clearly indicate the therapeutic efficacy of P. amarus aqueous extract against altered hematologicalÂ parameters, transaminases and oxidative stress of hepatic tissue in STZ-inducedÂ diabetes. Hence this plant could be used as an adjuvant therapy for the prevention and/orÂ management of diabetes.