Boswelia dalzielii (family Burseraceae) is the West African species of the frankincense producing genres. Its ethnomedicinal applications include the treatment of emesis, heart diseases, leprosy and diabetes mellitus. Ethanolic extract of the plant was investigated for their anti-hyperglycaemic properties and their effect on haematological parameters of normglycemic and alloxan-induced hyperglycaemic albino rats. The study showed a statistically significant P<0.05) reduction of blood glucose concentration in the diabetic experimental animals proceeding from day 2 through day 7 of extract administration and in the normoglycemic (non-diabetic) rats starting from day 5 through day 7. Assessment of the ethanolic extract of the plant on haematological parameters showed significant (p<0.05) reduction in circulating RBC, Hb, MCH and MCHC but an increase in MCV of the hyperglycaemic rats. Total white blood cell (WBC) count and monocyte (MONO) decreased significantly (p<0.05) while lymphocyte increased significantly |p<0.05) astreatment progressed. The result of the present study suggests that ethanolic extract of B . dalzielii possess antihyperglycaemic properties. However, while the plant may be useful for the treatment of diabetes mellitus, it has been shown to educe the number of circulating red blood cells, haemoglobin and white blood cells in diabetic animals.