We evaluated the anti-diabetic effects of Isaria tenuipes in diabetes mellitus type 2. For the experiments, the diabetic animal model OLETF rats were divided to 4 groups: Isaria tenuipes was administered mixed with the high fat diet 45% at dose levels of 0.0%, 0.1%, 1.0%, and 5.0% for 4 weeks. All animals have free access to water and high fat diet 45%. The diabetic clinical markers, including clinical signs, body weight and food intake, organ weights, blood glucose level, insulin level and HOMA-IR index, oral glucose tolerance test, GLUT4 mRNA and protein were measured at a time. After administration for 4 weeks, the blood glucose levels, insulin levels and HOMA-IR index of test groups were decreased compared with control group in dose-dependent manner. The body weight and diet consumptions were reduced in control group at 4 weeks. The treatments of Isaria tenuipes also showed high expression of GLUT4 mRNA and protein in the muscle of OLETF rats. The results suggest that Isaria tenuipes has anti-hyperglycemic effect attenuating blood glucose in the animal model of type 2 diabetes and might be useful as a functional diet for human diabetic diseases.