Carica papaya leaf is considered extensively in the indigenous system of medicine as an antidiabetic agent. The current investigation focuses attention on the lipid-lowering property of the aqueous extract of Carica papaya leaves on chemically induced diabetes in albino mice. The lipid parameters studied are plasma total cholesterol (TC), low-density lipoprotein cholesterol (LDL-C), high-density lipoprotein cholesterol (HDL-C), very low-density cholesterol (VLDL-C), triglyceride (TG) and phospholipids (PL). The aqueous extract of C. papaya (250 mg/kg) reduced the total cholesterol of normal mice from 92.69±2.14 to 78.92±2.01 mg/dl 8 weeks after oral administration of the extract (P<0.05). It also significantly lowered triglycerides level from 168.32±2.17 to 115.43±4.34 mg/dl, and lowered phospholipids level in diabetic mice from 126.00±2.25 to 89.86±2.38 mg/dl.