Chromatographically separated fractions of seed extract of Nirmali (Strychnos potatorum L.) were given orally to normal and alloxan-induced diabetic rats for two weeks. Serum lipids like cholesterol, triglycerides, HDL, LDL and VLDL were estimated. Results showed that out of five fractions separated from column chromatography only the fourth fraction produced a significant fall in serum cholesterol, triglycerides, LDL and VLDL in normal rats. In diabetic rats the same fraction also decreased the raised levels of serum cholesterol, triglycerides, LDL and VLDL but increased HDL cholesterol. The fraction, thus, acts as hypolipidemic agent for both normal and diabetic rats.