Diabetes slowly and silently deteriorates practically all body organs, including the central and peripheral nerve systems and circulating fluids. The stress induced hormones can influence glycaemic control. Ayurveda takes a holistic approach to treating and managing diabetes related stress. Ashwagandha,a herbal plant shows adaptogenic and anti-stress properties. The present study is based on clinical trial, 60 patients were divided in two groups (30 each), where control was given diabetic allopathic medicine (Metformin 250 mg + Glimepiride 1 mg) and experimental were given Ashwagandha powder (300 mg) + (Metformin 250 mg + Glimepiride 1 mg) for six weeks. Blood was taken pre and post treatment to assess blood glucose and stress hormone parameters. The findings suggest that parameters relative to experimental blood sugar FBS (p=0.001), PPBS (p=0.001) and HbA1 (p=0.001) show clinically high significant differences between pre and post treatments relative to the control group. In study experimental and control pre-test exhibit greater levels of the stress hormone, supporting the connection between stress and T2DM. The values for stress hormone cortisol (p=0.001) and Dehydro-epi-androsterone DHEA (p=0.01) compared for pre and post treatment declined significantly for the experimental group than the control group. Based on the findings, the study supports that Ashwagandha (Withania somnifera) offers notable improvement in management of stress level and blood glucose level in T2DM patients.