The present study evaluated the beneficial effect of new diabetic formula(NDF) in diabetic rats. Adult Sprague-Dawley rats weighing 250-300 g were used. Diabetes mellitus was induced by intramuscular injections of streptozotocin(STZ, 50㎎/㎏). The extracts of NDF were orally administered at low or high dose two times a day to fasted diabetic rats for 3 weeks. Adminstration of NDF alliviated a significant reduction in weight gain in rats with STZ-induced diabetes. Following acute and repeated treatment, low dose of NDF suppressed the blood glucose concentrations of fasted diabetic rats. Repeated adminstration of NDF for 21 days improved liver and kidney functions in diabetic rats, as indicated by decline of serum alanine aminotransferase(AL T), alkaline phosphatase(ALP), blood urea nitrogen(BUN), creatinine level and kidney weights. The present study showed that NDF exerted antihyperglycemic effects and alliviated liver and renal damages caused by streptozotocin-induced diabetes.