The anti-diabetic effect of dried-silkworm Dongchunghacho water extracts was investigated in streptozotocin (STZ)-induced diabetic rats. Seven-week-old SD rats were randomly assigned to six groups: normal control (NC) group, diabetic control (DC) group, water extracts of Paecilomyces japonica grown on a dried-silkworm (PJ-DS, 50 mg/kg) group, PJ-DS (250 mg/kg) group, water extracts of Cordyceps militaris grown on a dried-silkworm (CM-DS, 250 mg/kg) group, and water extracts of dried-silkworm (DS, 250 mg/kg) group. These groups were orally provided with sample dissolved in water respectively for four weeks after an injection of STZ (60 mg/kg, ip) followed by identification of diabetic control (DC) group. After four weeks, body weight of all diabetic groups was significantly lower than that of the normal control (NC) group, but among diabetic groups there were no significant differences. Blood glucose levels of the PJ-DS (50 mg/kg), PJ-DS (250 mg/kg), CM-DS (250 mg/kg) and DS (250 mg/kg) groups were reduced compared to the DC group by 3.0 percent, 18.5 percent, 6.9 percent and 13.1 percent, respectively. Concentration of total cholesterol and triglyceride in blood plasma were to some degree decreased in PJ-DS (250 mg/kg) and DS (250 mg/kg) groups compared to the DC group. According to these results dried-silkworm Dongchunghacho water extracts (PJ-DS) boost protection against STZ-induced toxicity.