Ayurveda has a diverse point of view to prevent and treat diabetes which is apparently not associated with the insight of modern science. The ancient literature of Ayurveda described diabetes as Madhumeha (sugar related disease) and suggested a number of remedies to cure it. Although in the ancient literature, the mechanism of diabetes is not well-understood but, as far as treatment is concerned, the suggested way of treatment is undoubtedly effective which is confirmed by numerous researches worldwide. Interestingly, Ayurveda mainly focuses on balanced diet, improved lifestyle with routine Yoga practice. However, the use of medication in the form of herbal preparation is considered with least priority, given on the basis of Prakriti (genotype) of the patient. In the present work, we thoroughly reviewed Ayurvedic concepts for the treatment of type 2 diabetes mellitus using ancient Ayurvedic texts as well as the literature available in the most accepted scientific search engines i.e. PubMed, Scopus and Web of Science. In addition to the use of herbal therapy, this review also describes the use of Panchakarma and Yoga for the management of type-2 diabetes and post-diabetic complication like retinopathy, nephropathy and neuropathy.