The banaba leaf (Lagerstroemia speciosa L.) has been used in traditional Oriental medicine to treat diabetes in the Philippines. It contains corosolic acid (CA), a compound which has a hypoglycemic effect. We examined the effect of CA on blood glucose levels and the hydrolysis of disaccharides in the small intestine in mice. CA (10 mg/kg body weight) improved hyperglycemia after an oral administration of sucrose, and significantly reduced the hydrolysis of sucrose in the small intestine. These results suggest that the hypoglycemic activity of CA is derived, at least in part, due to the inhibition of the hydrolysis of sucrose.