Annona squamosa, known as custard apple, is a small tree from the Annonaceae family, commonly found in tropical and subtropical regions. The present study was designed to investigate the phytochemical properties and antidiabetic potential of Annona squamosa seed and bark extracts. The extracts were prepared using Soxhlet extraction with n-hexane, and their phytochemical composition was analyzed, revealing the presence of alkaloids, cardiac glycosides, saponin glycosides, and flavonoids. FTIR analysis confirmed the presence of bioactive functional groups. Using Wistar albino rats, diabetes was induced via alloxan monohydrate, and the effects of the extracts on blood glucose levels and body weight were evaluated over ten days. The results indicated significant hypoglycemic effects and improved body weight in extract-treated diabetic rats, comparable to the standard drug glibenclamide. Both extracts also improved body weight in diabetic rats. The findings suggest that Annona squamosa extracts have notable antidiabetic properties and potential for developing new antidiabetic treatments. Further research is necessary to fully elucidate the mechanisms underlying these effects and to establish the safety and efficacy of Annona squamosa.