Diabetes, when uncontrolled, causes dyslipidemia often followed by atherogenic abnormalities. The present study was aimed to determine the effect of Agaricus bisporus in diabetes-induced dyslipidemia. Diabetes in male rats induced by streptozotocin which showed increase in the treatment by A. bisporus significantly reduced the elevated blood glucose and lipid profile levels. Thus, our study demonstrates that the consumption of A. bisporus as a potential efficient natural therapeutic against induced typeI diabetes accompanied with hyperlipidimic rats. Thirty two waster male rats divided into four equal groups of 8 rats. Group Ι (Control group): received no drugs, Group Π (Agaricus bisporus powder (ABP) group): received (200 mg/kg body weight/day) orally for 21 days. Group IIΙ (Streptozotocin (STZ) group): received intramuscular injection once by STZ (40 mg/kg body weight). Group VΙ :(Streptozotocin+ A. bisporus group (STZ+ ABP)): received intramuscular injection once by STZ (40 mg/kg body weight) and after 3 days received orally ABP (10 mg/kg body weight/day) daily. Treatment in groups for 21 days after diabetes induction blood. Blood samples and pancreatic tissue were collected at 22 th day from treatment of A. bisporus. The obtained results showed that, rats treated with STZ showed a significant increase in glucose concentration with significant decrease in insulin level and G6PD activity. A significant increase in cholesterol, triglyceride, LDL with significant decrease in HDL levels. Also showed significant increase in MDA level and significant decrease in CAT, GPx, SOD activities and GSH level, where the liver enzymes ALT, AST significantly increased. Urea and creatinine (Kidney function) levels showed no significant changes. Animal’s body weight was significantly decreased through experimental period. Histological studies of pancreatic tissue showed atrophy and pancreatic tissue damage in island of Langerhans cells. The data obtained shows that A. bisporus are potential antidiabeteic natural products and antihyperlipidemic associated with diabetes.