ABSTRACT: Abnormal lipid-metabolism and elevated oxidative stress are the familiar complications of diabetic mellitus. Regulated lipid-metabolism and decreased oxidative stress have become the key indices to cure diabetic complications. The activities of broth extract (TBE) and mycelia polysaccharides (TMP) of Tremella aurantialba, which is one of the best-known multipurpose medicinal fungi in China, were studied using alloxan-induced diabetic rats. TBE contains saponins, while TMP contains polysaccharides. Both TBE and TMP could reduce the blood glucose levels of diabetic rats; TBE had stronger abilities to reduce the levels of total cholesterol and total triglyceride in serum, those of malondialdehyde, and enhance the activities of superoxide dismutase and glutathione reductase in different tissues of diabetic rats (P < 0.01). TBE had slightly stronger abilities to enhance the total antioxidant capability, catalase, and glutathione peroxidase in different tissues of diabetic rats, but no significant difference was found between TBE and TMP groups. All these results indicated that TBE was more capable of regulating lipid-metabolism and decreasing oxidative stress.