The purpose of this study was to investigate the effect of dietary supplementation of sea tangle (Laminaria japonica) on the blood glucose and lipid metabolism in streptozotocin (STZ)-induced diabetic rats. Male Sprague-Dawley rats were divided into 3 groups fed control, sea tangle powder (15%, w/w), or sea tangle water extract (4%, w/w) diet. Diabetes was induced by a single injection of STZ (60 mg/kg, i.p.) in citrate buffer. The animals were fed each of the experimental diet for 13 weeks. Serum insulin was increased by dietary supplementation of sea tangle in diabetic rats. Dietary sea tangle reduced blood glucose level of diabetic rats compared to the diabetic rats fed control diet. Dietary sea tangle also reduced the serum total cholesterol, low density lipoprotein (LDL)-cholesterol, and triglyceride in the diabetic rats. While hepatic lipids were reduced, fecal excretion of lipids was increased by supplementation with dietary sea tangle in the diabetic rats. These results indicate that dietary sea tangle decreased blood glucose and improved lipid metabolism in STZ-induced diabetic rats and this effect might be exerted by increases in serum insulin and fecal excretion of lipids.