Alcohol abuse is thought to be a risk factor for the cause of liver damage, hyperlipidemia and insulin resistance. An alcohol-fed rat model was developed by chronic administration of ethanol to rats which caused significant alteration in liver function as revealed by elevated serum transaminases, alkaline phosphatase, acid phosphatase, sorbitol dehydrogenase, glutamate dehydrogenase, lactate dehydrogenase and bilirubin and decline in total serum protein content over the control group after 25 days of feeding in both male and female rats. Hepatic glutathione, lipid peroxides, glutathione peroxidase, alcohol dehydrogenase, aldehyde dehydrogenase, glycogen and total protein in liver were also significantly altered. A slightly elevated fasting blood glucose profile, 1.5 fold higher serum insulin levels and impaired glucose tolerance was prevalent in ethanol treated rats. In the present study, the effect of picroliv, an irridoid glycosidic fraction of Picrorhiza kurroa, on the above said parameters of these alcoholic rats was studied. Picroliv significantly reverted most of the above said altered blood and hepatic parameters in the alcohol-fed male and female rats to almost normal levels.