Diabetes mellitus (DM) is one of the most prevalent endocrine disorders, projected to affect over 300 million people by 2025. Despite the availability of several anti-diabetic drugs, their adverse effects have prompted the search for safer alternatives. The present study investigates the anti-hyperglycemic and anti-hyperlipidemic effects of the ethanolic extract of Syzygium aromaticum (L.) Merr. & L.M.Perry (clove). Dried clove powder was extracted using ethanol and subjected to phytochemical screening, revealing the presence of various bioactive constituents like phenols, terpenoids, alkaloids, etc. The extract was evaluated for in vitro anti-diabetic activity using α-amylase and α-glucosidase inhibition assays in our laboratory at Trichy. Gas chromatography-mass spectroscopy (GC-MS) analysis identified major phytocompounds, including eugenol. In vivo studies were conducted on streptozotocin (STZ) induced diabetic albino rats, divided into five groups. Treatments included eugenol (10 mg/kg body weight), ethanolic extract (300 mg/kg body weight) and glibenclamide (3 mg/kg body weight) as a standard drug. The treated groups exhibited significant improvement in glucose and lipid profiles compared to diabetic controls. Docking studies further confirmed eugenol’s strong binding affinity to pancreatic amylase and glucosidase, supporting its inhibitory potential. Pancreatic α-amylase had a glide score of -6.8, pancreatic α- glucosidase had a score of -7.9 and the AMP-activated protein kinase (AMPK) had a value of -7.3 kcal/mol. This effect may be the reason for its antidiabetic nature. The ethanolic extract of S. aromaticum and its key constituent eugenol demonstrated potent anti-hyperglycemic and anti-hyperlipidemic effects, suggesting their potential use as natural therapeutic agents for diabetes management.