The present study investigated the effect of silymarin, a flavonoid, on streptozotocin (STZ) - induceddiabetic dyslipidaemia in rats. Experimental diabetes was induced by a single intraperitonealinjection of STZ (60 mg/kg). Silymarin (25 mg/kg and 50 mg/kg) was orally administered todiabetic rats for a period of 15 days. Blood glucose levels, serum lipid profile and liver glycogenlevels were estimated following the established procedures. Biochemical observations weresupplemented with histological examination of liver sections. Oral administration of silymarin todiabetic rats significantly (P < 0.001) decreased the blood glucose levels (259.99 ± 23.64 vs. 99.90 ±2.62 [25 mg] & 89.17 ± 3.32 [50 mg]). The most interesting finding was the significant (p < 0.001)increase in HDL-cholesterol levels (26.99 ± 0.61 vs. 40.55 ± 0.52 [25 mg] & 41.12 ± 0.37 [50 mg])whereas, there was a significant decrease in serum total cholesterol (TCh), triglycerides (TG), lowdensity lipoprotein (LDL) and very low density lipoprotein (VLDL) cholesterol levels observed insilymarin treated diabetic rats. STZ treatment caused significant degeneration of liver parenchyma,which was normalized to near normal morphology by administration of silymarin. The findingsindicate that silymarin effectively improved the overall lipid profile and restored the glycogenstores in the liver of STZ-induced diabetic rats, in a dose dependent manner. The results indicateexistence of abnormalities in lipid metabolism in STZ-induced diabetic rats and suggest aprotective effect of silymarin in this animal model.