Type 2 diabetic mellitus is a predominant metabolic disorder that has a direct impact on human health. Although scientific data are deficit, coconut jaggery has been suggested as a better alternative for cane sugar by some individuals. This study was conducted to assess the credibility of this claim. Coconut jaggery was prepared at Coconut Research Institute, Sri Lanka and nutritional composition of coconut jaggery was compared with cane sugar using standard methods. Signifi cantly higher (P < 0.05) moisture (8.92 ± 0.22)%, ash (2.09 ± 0.33)%, protein (1.91 ± 0.28)%, fat (0.14 ± 0.02)% and fi ber (0.05 ± 0.03)% contents were observed in coconut jaggery compared to cane sugar. The total starch and total sugar content of the coconut jaggery was signifi cantly (P < 0.05) lower than that of the cane sugar. Forty-three patients (Male: 16, Female: 27) with type 2 diabetes from the Endocrinology unit, National Hospital Colombo, Sri Lanka were voluntarily engaged in the study, subjected to an initial health screening. Then, determination of postprandial blood glucose responses after intake of the standard (glucose), cane sugar and coconut jaggery. Average age of the selected group was (48.19 ± 7.95) years and they were all overweight (BMI > 23.0). The mean fasting blood glucose level and HbA1c of the subjects were (149.05 ± 54.88) mg/dL and (9.170 ± 2.022)%, respectively. There was no signifi cant difference (P > 0.05) in peak blood glucose concentrations or incremental area under the curve in blood glucose response of two test food. Therefore, coconut jaggery cannot be considered as a healthy substitute for cane sugar in type 2 diabetic patients.