This investigation was undertaken to study the effects of oral administration (3 weeks) of Collybia confluens mycelial powder (CCMP) produced by a submerged culture on plasma glucose and other biochemical parameters in streptozotocin (STZ)-induced diabetic rats. Antidiabetic and hypolipidemic effects were proportionally increased with the increasing concentration of the CCMP for oral administration. The CCMP, at the dose of 400 mg/kg BW, substantially reduced the plasma glucose level by as much as 33.1 % as compared to the STZ-induced diabetic rats group. It also lowered the plasma total cholesterol, triglyceride, and low density lipoprotein (LDL) cholesterol by 22.9%, 19.9%, and 37.3%, respectively. The levels of total cholesterol and triglyceride in liver were reduced to the extent of by 13.5% and 18.8%, and the activity of alanine transaminase (ALT) and aspartate transaminase (AST) was decreased by 48.8% and 37.2%, respectively, under the influence of CCMP. The general components of CCMP were found to contain 26.18% carbohydrate, 3.67% crude ash, 4.02% crude fat, 22.55% crude protein, and 43.58% dietary fiber. The amino acid composition of the CCMP was also analyzed in detail.