Natural products in medicine have been gaining attention due to their potential to provide new and effective therapies for chronic diseases such as diabetes. Pterocarpus marsupium, a species of tree in the family Fabaceae, has been used in traditional medicine for centuries to treat diabetes, inflammation, and skin diseases. In this study, the flavonoid compound baicalin was successfully isolated and identified from the aqueous extract of P. marsupium leaves. The methods used in the study include column chromatography, MASS, FT-IR, 13C-NMR, and 1H-NMR spectroscopical analysis for structural characterization. Baicalin has been shown to have anti-diabetic activity by through in vitro alpha-glucosidase and alpha-amylase inhibitory assays. These results highlight the potential of baicalin as a therapeutic agent for diabetes. Further preclinical and clinical studies are necessary to fully elucidate baicalin's mechanism of action and determine its safety and efficacy in vivo. This study represents an important step in identifying and characterizing bioactive compounds from P. marsupium and highlights the potential of natural products as a source of new and effective therapies for chronic diseases such as diabetes.