The study on hypoglycemic effect of Paspalum scorbiculatum (Varagu rice) was carried out with the objective of assessing the therapeutic potentials, thus promoting the consumption of Varagu rice for the dietary management of diabetes mellitus. The study also aimed at monitoring the impact of Varagu rice and brown rice based breakfast consumption on the blood glucose levels of selected subjects. The results of the present study proved that Varagu rice had good glycemic potentials. Nutrient content of Varagu rice was high in energy, protein, magnesium, fat, chromium and fiber than brown rice. The glycemic response study of the subjects also revealed that postprandial values of both experimental and control group subjects at 60, 90, and 120 minutes were statistically significant (at 0.001 level). The significant reduction in blood glucose levels of the diabetes throw light on the efficacy of the Varagu rice in the dietary management of diabetes mellitus. Therefore, the massive awareness and promotion of the anti-diabetic potentials of Varagu rice is well appreciated.