Introduction: In diabetic patients, decreasing of serum glucose level and lipids is clinically important. In this study, the effects of Thymus vulgaris aqueous extract on the blood glucose and lipids in streptozotocin (STZ) induced diabetic rats was studied.Materials and Methods: In this experimental study, male Wistar rats weighting 200-250 gr were employed and maintained at 22±2ºC. The rats were divided into 5 groups and each consisted of 6 rats. Experimental groups were made diabetes by streptozotocin (STZ) (70 mg/kg i.p.). Three groups of rats were given aqueous extract (100, 200 and 400 mg/kg) for 21 consecutive days. After the treatment, blood samples were taken and serum glucose, triglyceride, total cholesterol, HDL-C, LDL-C, VLDL levels were measured by Enzymatic methods.Results: The results after 3 weeks indicated that serum glucose, total cholesterol, LDL-C, VLDL and triglyceride levels were increased (p<0.001) while HDL-C level was decreased (p<0.001) significantly in the diabetic group as compared to the control group. Treatment of diabetic ratswith Thymus vulgaris aqueous extract, caused a decrease in serum glucose, total cholesterol, LDL-C, VLDL and triglyceride levels (p<0.001) with an increase in HDL-C level (p<0.001).Conclusion: Treatment of diabetic rats with Thymus vulgaris aqueous extract not only decreased the level of serum glucose but also has beneficial effect on serum lipids.