Abstract: Diabetes mellitus is classified into two major types, Type 1 (Insulin Dependent Diabetes Mellitus) and Type 2 (Non-Insulin Dependent Diabetes Mellitus). In world about 90% of diabetes patients are of Type 2 diabetes. There are various in-vivo and in-vitro methods available for the screening of new antidiabetic drugs. In-vivo models mainly uses chemical such as streptozotocin, alloxan etc. for the induction of diabetes where as in-vitro techniques, directly show its effect on cells which are responsible for induction of diabetes in human. In vitro techniques provide more accurate data and possible mechanism which are involved in diabetes disease. Now, a day's newer techniques such as diabetes induction with the help of viruses had been also introduced which are proving to be good tool in evaluation of antidiabetic drugs. This review could prove to be a good tool for the researchers who seek to do research on diabetes as it is providing vast resource about diabetic model under single umbrella. Key words: Diabetes, in vivo, in vitro, STZ, Alloxan.