Psidium guajava (Family: Myrtaceae) is an economically important plant of high medicinal value (1-3). Psidium guajava is commonly known as guava. It needs a tropical location and full sun for its healthy growth. Flavonoids, gallic acid and tannins are invariably present in all part of the plant viz., fruit, leaves, stem bark and heartwood (4,5). It has been reported earlier that the polyphenols and lucocynadines present in good amount in P. guajava may account for the marked astringent and medicinal properties of the different parts of the plant (4). The guava fruit is a berry, which consists of a fleshy pericarp and seed cavity with fleshy pulp and numerous small seeds. P. guajava fruits are rich in dietary fiber associated with natural antioxidant compounds (3). Recently, the ripe fruit peel has been found to posses hyperglycaemic activity by our research group (6) and diabetic patients are advised to peel off the ripe guava before eating. Antidiabetic activity based on higher concentration of Mg in the raw fruit peel of P. guajava has already been described (1,7). No reports are available on the hypolipidaemic activity of raw fruit peel. Hence, we evaluated the hypolipidaemic and hepatoprotective effects of raw fruit peel of P. guajava in streptozotocin (STZ) diabetic rats.