With the increasing utilization of natural herbal products and plant extracts for disease management, Pterocarpus marsupium has emerged as a plant rich in phytoconstituents with the potential to manage diabetes mellitus. This review article comprehensively examines its botanical description and pharmacological effects on diabetes management. Botanically, P. marsupium is distinguished by its unique heartwood, leaves, and flowers, with longstanding medicinal uses deeply entrenched in Ayurvedic traditions. Pharmacologically, extracts from various parts of P. marsupium exhibit promising antidiabetic properties, including inhibition of α-amylase and α-glucosidase enzymes, augmentation of insulin secretion, and enhancement of insulin sensitivity. Additionally, P. marsupium extracts manifest antioxidant, hepatoprotective, and anti-inflammatory activities, augmenting their therapeutic potential in diabetes management. Understanding the botanical characteristics and pharmacological mechanisms of P. marsupium sheds light on its role as a natural remedy for diabetes mellitus, emphasizing its significance in both traditional and modern medicinal practices.