Oral administration of aqueous extract of Arthrospira platensis and purified phycobiliproteins were administered in to rats for establishing its protective role in controlling diabetes.The crude extract of A. platensis intact cells is able to control the glucose levels by altering the enzyme activities through improved insulin secretion. Further, the crude extract also acts as antilipidemic and able to minimize then histopathological damage in the liver tissue of diabetic induced rats. Similarly the isolated phycobiliproteins of Arthrospira is able to act as antihyperglycemic as well as antilipidemic at lower concentration when compared to that of crude extract. Thus in comparison with crude extract the active principle (PBPs) is able to regulate the both carbohydrate and lipid metabolism besides to the minimization of hepatic damage in STZ-diabetic rats. Thus the A. platensis cell extract and phycobiliproteins have not produced any toxic effects on liver during the period under acute or chronic conditions. In principle it is not lethal in the range of 20 to 40 mg / kg bw and exerts antidiabetic effects and control several biological parameters during Diabetic in rats.