Worldwide diabetes and diabetic neuropathy is the highly prevalent healthcare problem. Herbal based therapy is an alternative and safe management of this problem. Adenanthera pavonina is an important medicinal plant having many of the medicinal values. This research aimed to evaluate the antihyperglycemic and neuroprotective activity of bark of Adenanthera pavonina. Hydro alcohol (50% methanol) was used as the solvent for extraction. Streptozotocin (55 mg/kg, i.p) induced diabetic rats were used for the evaluation of antihyperglycemic and neuroprotective activity. Diabetic rats were treated with hydro alcoholic bark extract of Adenanthera pavonina (HABEA) for 21 days. After treatment period blood glucose levels, SGOT, SGPT, Glutamate and Lipid peroxidase levels were decreased significantly in HABEA (200 and 400 mg/kg, p.o) treated rats. However, body weight, Serotonin, GABA, total protein and reduced glutathione levels were increased. And also behavioral parameter such as pain behavior (Hot Plate Method and Tail Immersion Method) and locomotor behavior (actophotometer) were significantly improved in HABEA (200 and 400 mg/kg, p.o) treated rats. These are the findings confirms that, the HABEA has significant antihyperglycemic and neuroprotective activity. Alkaloids, glycosides, flavonoids, saponin, phenolics and phytosterol present in the bark of Adenanthera pavonina may be the reason for its antihyperglycemic and neuroprotective activity. Further, this research will useful for the isolation of active principles from HABEA and determining its molecular mechanisms