Cinnamon is one of the oldest spices in the world and widely used as an anti-diabetic medicine. We have investigated the effect of Cinnamon zeylanicum extracts on involvement of important coactivators like PGC1α αα α and SRC1 in potentiation of PPARγ γγ γ activity. Present study demonstrates that 50:50 ethanol aqueous extract of Cinnamomum zeylanicum bark contains specific PPARγ agonists that activate PPARγ in HEK293/T cell based reporter assay and also dose-dependently potentiate the extract mediated PPARγ activity in presence of co-activators like PGC1α αα α and SRC1, overexpressed in the cells. Knockdown of PGC1α αα α gene by specific shRNA against PGC1α αα α, significantly reduced the transactivation potentiation effect of extract induced by coactivator. The ability to activate PPARγ γγ γ receptor is also supported by its adipogenic potential observed in mouse 3T3-L1 adipogenesis assay. The CZE3 extract improved glucose tolerance in the 12 h fasted C57BL/6 male mice. In summary aqueous ethanolic extract of Cinnamomum zeylanicum exhibits part of its glucose lowering effect via activation of PPARγ γγ γï�? ï�?  and extract mediated PPARγ γγ γï�? ï�?  activity is increased upon overexpression of PGC1α αα α and SRC1 in a cell based in vitro assay.