Phenolic compounds in plants have been experimentally proven to have activity as inhibitors of dipeptidyl peptidase IV (DPP-IV), one of enzymes responsible for the increase in blood glucose in diabetic patients. Phaleria macrocarpa contains these secondary metabolites in a large amount so that potentially show activity close to sitagliptin in improving diabetes. To evaluate this activity, we conducted a study in which ethanol extract of P . macrocarpa (EEPM) were given at dose 550 mg/kg; 1100 mg/kg; and 1650 mg/kg in alloxan induced-diabetic rats for 7 days. The positive control was given sitagliptin at dose 9 mg / kg while negative controls were fed aquadest. The result revealed that the administration of EEPM and sitagliptin attenuated blood glucose level with no significant difference (p> 0.05) which showed a promising activity of EEPM in competing sitagliptin. This result could be a start to provide an alternative DPP-IV inhibitor.