The purpose of this study was to investigate extract from mixed culture with Trichloloma matsutake mycelium in oriental medicine and cereal medium(OCM) to develop new material for pharmaceutical products and medicinal food for diabetes mellitus. To evaluate of hypoglycemic activity of OCM extracts, we examined the inhibitory activity of ${alpha}$-glucosidasein OCM, blood glucose level and liver function of streptozotocin(STZ) induced diabetic rat. Experimental group was divided into 6 groups: first, it was divided into normal control group(hereafter NC group) and diabetes-induced group, and diabetes-induced group was subdivided into diabetic control group(DC group), treated by hot water extracts group(HE), ultra sonic waves, micro waves, and micro bubble extracts g roup(UE), crude polysaccharide of HE group (HEE) and crude polysaccharide of UE group(UEE) at a dose of 300mg/kg/body weight, respectively. In diabetic-induced groups, after streptozotocin was melted in 0.01M citrate buffer at 50mg/kg/body weight, when the non-fasting blood glucose levelwas 300 mg/dl or more in blood collected from the tail vein, it was regarded as diabetic induction and then such diabetic-induced experimental animals were used in this experiment. At the end of the experiment, blood glucose level increased by 4.19% in DC group but significantly decreased by 32.34%, 19.19%, 17.81% and 17.64%, respectively in UEEE, UE, HE, and HEE groups. In the cases of AST, ALT, and ALP, the experiment group treated with extracts showed significantly lowerblood glucose level than DC group. The levels of BUN and uric acid were found to be lower in the UMPM extract group(UE) than HW extract group(HE), which implies that herb medicine medium extracts in which Tricholoma matsutake mycelia were cultured are effective in reducing impaired liver function as well as high blood glucose level caused by diabetes. In addition, the administration of low temperature UMPM extracts was found to produce better results than that of high temperature hot water extracts. In this regard, it is expected that extracts from herb medicine obtained by cultivating Tricholoma matsutake mycelia will be widely used as new ingredients for foods and medicines for prevention and treatment of diabetes.