Abstract : Alpha glucosidase in-vitro inhibitory activity and hypoglycemic effect by oral administration in rats of Physalis minima ethanol extracts have been investigated. Physalis minima extract showed in-vitro inhibitory activity of intestinal alpha glucosiadase enzyme maltase. Analysis of data confirms that alpha glucosidase inhibition activity was maximum at 1000mcg/ml of Physalis minima. The purpose of study was to know whether Physalis minima extract could reduce intestinal absorption of monosaccharides by inhibiting disaccharide hydrolysis. The post prandial elevation in blood glucose level at 60 and 120 min after administration of maltose with Physalis minima extracts (200 mg/kg and 400 mg/kg doses) showed significant suppression compared to control group. These results suggest that the Physalis minima extract has potent alpha glucosidase inhibitory activity and would be effective in suppression of elevation in blood glucose after oral administration of maltose to rats.