Objective:To observe the effects of the Jia Wei Ginsheng Bai Hu Decoction(JGD) on hyperglycemia and hyperlipidemia in alloxan induced diabetic rats. Methods: 90 Wistar rats were used and divided into different groups. The diabetic model rats were established by intra abdominal injection of alloxan (ALX). The rats were treated with JGD in dosages of 16.0g/kg(Group 1) and 32.0g/kg( Group 2) and Jiang Tang Shu capsule (JTS) in a dosage of 0.2g/kg (possitive control group),twice a day, respectively. Normal control group was treated with saline. After 14 days of treatment, blood glucose and serum lipids content of each group were determined.Results: JGD and JTS could remarkably decrease the blood glucose in ALX induced diabetic rats.( P <0.01). The blood glucose concentrations were reduced by 38.2%,42.7% and 50.7%,in Group 1,Group 2 and the positive control group respectively. JGD could obviously decreased the levels of serum TC,TG and LDL C in model rats,and significantly increase the serum contents of HDL C in diabetic rats ( P <0.01, P <0.05).Conclusions: JGD can reduce the blood sugar and blood fats in alloxan induced diabetic rats.