Aim: Momordica charantia is reported to possess hypoglycemic activity. This study aims at investigating the effect of Momordica charantia extract on glucose tolerance and some biochemical parameters in alloxan induced diabetes, comparing it to the effect of rosiglitazone maleate, an oral hypoglycemic drug, and to suggest the possible mechanisms of its action. Main methods: Rats were divided into 5groups: normal control, rats received bitter melon, diabetic control, diabetic treated with rosiglitazone (4mg/kg BW), and diabetic received Momordica charantia (300 mg/kg BW). After 4weeks, OGTT, serum insulin, lipid profiles, glycohemoglobin% (HbA1c%), liver enzymes activity and glycogen content, intestinal absorption and diaphragm uptake of glucose and histopathological studies on the pancreas were evaluated. Key findings: Bitter melon (BM) induced a significant improvement of OGTT and induced a significant decrease in HbA1c% (p<0.05), significantly increased insulin release from the pancreas and serum insulin level, increased glucose uptake by rat diaphragm and decreased intestinal glucose absorption (p<0.05). BM improved lipid profile. In addition, BM significantly increased liver glycogen content and reduced liver enzyme activity compared to the diabetic control. BM treatment of diabetic rats resulted in significant hypoglycemic and hypolipidemic effects as compared to rosiglitazone (p<0.05). Significance: Results demonstrated anti-diabetic effects of bitter melon may be through increasing insulin release and serum insulin, increasing glucose uptake by muscles and decreasing intestinal glucose absorption and a hypolipidemic effect and this recommend its therapeutic use in diabetes. [Ibraheem Mohammady, Samah Elattar, Sanaa Mohammed and Madeha Ewais. An Evaluation of Anti-Diabetic and Anti-Lipidemic Properties of Momordica charantia (Bitter Melon) Fruit Extract in Experimentally Induced Diabetes. Life Sci J 2012;9(2):363-374]. (ISSN: 1097-8135). http://www.lifesciencesite.com. 57.