ABSTRACT Background: Oxidative stress may induce some pathological conditions like diabetes mellitus characterized by the elevated blood glucose level. The present study was carried out to determine the total flavonoids and phenolics contents, antioxidant and hypoglycemic effects of methanol, ethyl acetate extracts and decoction of Aquilaria microcarpa Baill leaves Methods : Extracts were performed using percolation method. Total flavonoids and phenolics contents were analyzed by the Folin–Ciocalteu colorimetric and aluminium trichloride assays respectively while antioxidant effect was determined using the 2,2-diphenyl-1- picrylhydrazyl radical scavenging assay. Hypoglycemic effect was evaluated in alloxan induced diabetic rats for 14 days and measured by mainly estimating pre– and postprandial blood glucose and glycogen liver levels. Results Ethyl acetate extract revealed the highest total flavonoid content followed by methanol extract and decoction [(475.08±3.4) , (117.24±0.5) and (82.38±0.5) mg quercetin equivalent/1 g extract respectively]. While methanol extract revealed the highest total phenols content followed by ethyl acetate extract and decoction [(534.43±0.47), (62.92±0.46) and (0.913±0.00) mg gallic acid equivalent/1 mg extract respectively). Antioxidant capacity (IC50 value) for methanol extract, ethyl acetate extract and decoction were 15.59, 58.33 and 24.52 ppm respectively. All extracts and decoction significantly (p<0.05) decreased pre– and postprandial blood glucose levels and increased glycogen liver level. Conclusions : Therefore, it can be concluded that methanol extract, ethyl acetate extract and decoction possess antioxidant and hypoglygemic effects. Keywords: antioxidant, hypoglycemic effect, Aquilaria microcarpa Baill