The study aimed to investigate the antihyperglycemic and antilipidperoxidative effects of ethanol extract of the dry matter from culture broth of Coriolus versicolor (ECBC) in streptozotocin-induced diabetes mice. Blood glucose level, insulin level, total cholesterol (TC), triglyceride (TG), low density lipoprotein-cholesterol(LDL-C), high density lipoprotein -cholesterol (HDL-C) in serum and reduced glutathione level (GSH), lipid peroxidation, glycogen, antioxidant enzymes in liver were evaluated. Moreover, histopathological observation was conducted. Streptozotocin treatment (150 mg/kg body weight) induced the decrease of GSH level, antioxidant enzymes activities, glycogen content in liver, HDL-C content and insulin level in serum, accompanied by the elevation of the lipid peroxidation in liver, serum blood glucose level, contents of TC, TG and LDL-C. Treatment with ECBC restored the changes in the above parameters up to the basal level. The protective effects were further supported by the attenuation of the degree of pancreas damage in ECBC treated mice.