A recent randomized and double-blind placebo-controlled clinical study bas indicated that Ganoderma lucidum polysaccharides (GLP) decrease blood glucose in patients with type II diabetes. The aim of this study was to investigate the effect of the GLP extract in alloxan-induced diabetic rats. Oral administration of GLP at 0.25, 0.5 and 1.0 g/kg for 4 weeks resulted in a reduction of blood glucose levels by 12.5, 18.7 and 33.7% respectively, while glibenclamide treatment brought the hyperglycemic value down to normal. The hyperglycemic effect was supported by a significant decrease in glycosylated haemoglobin and increased plasma insulin levels (p<0.01) in a dose- and time-dependent manner. This study showed that GLP has similar hypoglycemic effects as glibenclamide in alloxan-induced diabetic rats.