Twenty Type 2 diabetic subjects between theage group of 30-60 years were studied to see the effect of 40 days of Yoga asanas on biochemical profile. The duration of diabetes ranged from 0 to 10 years. Subjects suffering from cardiac, renal and proliferative retinal complications were excluded from the study. Yoga asanas included Surya Namaskar, Tadasan, Konasan, Padmasan, Pranayama, Paschimottanasan, Ardhmatsyendrasan, Shavasan, Pavanmuktasan, Sarpasan and Shavasan. Subjects were called to the cardio-respiratory laboratory in the morning time and were given training by the Yoga expert. The Yogic exercises were performed for 30 - 40 minutes every day for 40 days in the above sequence. The subjects were prescribed medicines and diet. The basal blood glucose, lipid profile and glycosylated haemoglobin was measured and repeated after 40 days of yoga asanas. There was a statistically significant decrease in fasting blood glucose (from baseline 208.3 ± 20.0 to 171.7 ± 19.5 mg/dl) and decrease in Postprandial blood glucose (from 295.3 ± 22.0 to 269.7± 19.9 mg/dl). The decreases in values of serum cholesterol were also statistically significant (from 222.8 ± 10.2 to 207.9 ± 8.6 mg/dl). The triglyceride decreased (from 168.5 ± 15.5 to 146.3 ±13.5 mg/dl), low-density lipoprotein cholesterol and very low-density lipoprotein improved (from 144.8 ± 8.6 to 140.70 ± 7.9 mg/dl and from 37.4 ± 4.6 to 32.1 ± 3.4 mg/dl). The glycosylated haemoglobin decreased from 10.27 ±0.5 to 8.68 ± 0.4 %. These findings suggest that yoga asanas have a beneficial effect on glycaemic control and lipid profile in mild to moderate Type 2 diabetes.