The present study was carried out to examine the hypoglycemic effect of Silver Nanoparticles (SNPs) using ethanolic root extract of Clausena anisata (Willd.) Hook. f. ex Benth. A cost effective and eco friendly technique for green synthesis of SNPs from 1mM AgNO3 solution through the root extract was carried out. The biosynthesized SNPs were characterized using UV spectrophotometry, Field Emission Scanning Electron Microscopy (FESEM), X-ray Diffraction analysis (XRD), Energy Dispersive Spectroscopy (EDS) and Fourier transform infra-red (FTIR) spectrometry. DPPH assay was done to determine the antioxidant activity and for in vitro hypoglycemic activity glucose uptake by yeast cells, alpha amylase inhibition assay, adsorption capacity and glucose diffusion assay was performed. The SNPs of ethanolic root extract were found to be spherical in shape and up to 32.75 nm average in size. They showed alpha amylase inhibitory activity of 83.60% at 500 μg/ml. The glucose uptake by yeast cells was found to increase with an increase in concentration. The maximum glucose uptake was found to be 69.51% at 10mM concentration. The molar concentration of glucose was directly proportional to the glucose binding capacity of extracts.The rate of glucose diffusion across the membrane was found to increase from 30 to 180 minutes. The DPPH scavenging activity was found to be potent (74.07%) at 500 μg/ml. The hypoglycemic effect exhibited by the SNPs was revealed by simple in vitro model of yeast cells, mediated by glucose adsorption, increasing glucose diffusion and glucose transport across the cell membrane.