Diabetes mellitus which comprises of type 1 and 2 is caused by a deficiency in the secretion of insulin. The deficiency results in some degree of abnormality in both glucose and lipid metabolism. In view of this, lipid profiling becomes an active research area. This study evaluates the effect of ethanolic extract of Cinnamum Zeylanicum on the lipid profile of alloxan- induced diabetic rats which were distributed into three groups. Three rats each were kept as normal control and diabetic control, respectively. Then, the 3rd group was rendered diabetic by the subcutaneous injection of alloxan in a single dose of 150mg/kg body weight and were in addition administered 200mg/ml cinnamon extract per body weight for 12 days. Oral administration of cinnamon exhibited antihyperlipidaemic effect by significantly (p<0.05) reducing LDL -cholesterol values from (0.60 ± 0.06) for day 4 to (0.58 ± 0.40) for day 8 and (0.37 ± 0.16) for day 12 respectively and increasing HDL level from (0.73 ± 0.12) for day 8 to (1.13 ± 0.15) for day 12. Also for serum total cholesterol level it was reduced significantly from (7.67 ±0.24) for day 4 to (5.60 ±0.24) for day 8 and (5.13 ±0.33) for day 12. Serum triglyceride level was significantly reduced from (2.33 ± 0.18) for day 4 to (1.27 ± 0.18) for day 8. Effect of cinnamon may pose an alternative potent therapy for sufferers of diabetes.