Objective: Ayurveda and Yoga have emerged as beneficial adjuvant in management of diabetes. This pilot study was planned to understand the concepts and assess the effect of a combination of Ayurvedic panchakarma and Yoga. Design: Experimental pilot study with pre post design. Subjects: Twelve patients with type 2 diabetes in age between 40-70 years (mean 56 ± 9.08) with no cardiac, renal or retinal complications. Settings: Residential Holistic Health Centre of S-VYASA. Intervention: A validated Ayurveda protocol comprising of panchakarma followed by maintenance therapy with a specific module of Integrated Approach of Yoga Therapy for Diabetes that included selected physical postures (asanas), pranayama, meditation, lifestyle change and yogic counseling for stress management. All subjects underwent a residential program for six weeks followed by therapy at home for 12 weeks. Results were analyzed using paired “t” test. Results: After 6 weeks, Fasting Blood Glucose reduced (p < 0.05) from 129.31 ± 58.11 to 103.54 ± 40.74 (19.93%), Post Prandial Blood Glucose from 191.69 ± 76.77 to 152.92 ± 62.06 (20.23%, p < 0.05), Total choles- terol from 209 ± 33.7 to 186.92 ± 23.36 (10.56%, p < 0.05), Triglycerides from 198.25 ± 94.78 to 151.25 ± 43.65 (23.71%, p < 0.05), HbA1creduced (p = 0.014) from 8.79 ± 2.12 to 8.07 ± 1.77 (8.19%) in 6th week and further to 7.63 ± 2.12 (13.19%, p = 0.001) after 12th week. Oral Hypoglycemic Agent (OHA) drug score reduced from 2.83 ± 0.93 to 1 ± 1.27 (64.66%, p < 0.001). Symptom score reduced from 2.83 ± 1.02 to 1.66 ± 0.65 (p < 0.001). At baseline guna questionnaire showed six subjects each with rajas and tamas dominance. On post assessments, two subjects shifted from tamas to rajas dominance. Conclusion: This first pilot study has indication of a potentially beneficial effect of combining traditionally recommended Ayurveda panchakarma with maintenance herbs and Yoga, in reducing blood glucose and lipids. Long term RCT is recommended.