Cassia auriculata L. (Ceasalpiniaceae) has been used traditionally as antidiabetic and has been proven scientifically to possess high antioxidant activity and anticancer properties. In the present study the effect of Cassia auriculata L (CFEt) and glibenclamide on erythrocyte membrane bound enzymes and antioxidants activity in streptozotocin (STZ) and nicotinamide induced type 2 diabetic model was investigated. Oral administration of CFEt at 0.45 mg/kg body weight to diabetic rats for 45 days. The effect of CFEt and glibenclamide on thiobarbituric acid reactive substances (TBARS), superoxide dismutase (SOD), catalase (CAT), glutathione peroxide (Gpx), glutathione-S-transferase (GST), reduced glutathione (GSH) and membrane bound enzymes were studied. The effect of CFEt was compared with glibenclamide. The levels of erythrocyte TBARS, were increased significantly whereas the level of plasma insulin and haemoglobin, erythrocyte antioxidants (SOD, CAT, GPx, GST and GSH), membrane bound total ATPase, Na+/K+-ATPase, Ca2+- ATPase, Mg2+- ATPase were decreased significantly in diabetic rats. Administration of CFEt to diabetic rats showed erythrocyte TBARS. In addition the levels of erythrocyte antioxidants and the activities of membrane bound enzymes also were increased in CFEt treated diabetic rats. The present study indicates that the CFEt possesses a significant beneficial effect on erythrocyte membrane bound enzymes and antioxidants defense in addition to its antidiabetic effect.