Talauma ovata (Magnoliaceae) is used for the treatment of diabetes as an infusion prepared from leaves by the population in some parts of Brazil. In the present work this effect was analysed as part of a general screening of the plant. Chemical analysis demonstrated the occurrence of phytosteroids, saponins, alkaloids and tannins in the crude extract. Pharmacological studies failed to demonstrate a hypoglycemic effect of this plant in normoglycemic, hyperglicemic or alloxan-diabetic rats. The low DL50 obtained for this plant strongly suggeste that its consumption by the population may be hazardous.