The diabetes type 2 is the most common and growing issue of the world health. The purpose of this study is to evaluate the effects of “Metformin” on glucose, lipid profiles and oxidative stress in the alloxan-induced diabetic rats. In this study 40 Wistar rats, were randomly separated into 4 equal groups, containing: healthy control group, diabetic group, metformin-controlled group, and diabetic rats treated with metformin. Diabetes was induced by single dose of intraperitoneal injection of 120 mg/kg Alloxan. The groups 3 and 4 were fed 150 mg/kg/day of metformin for a period of one month. At the end, blood of all the rats were collected and the serum levels of glucose, triglycerides, cholesterol, LDL, HDL, VLDL, lipid peroxidation products as malondialdehyde index, plus the superoxide dismutase enzymes, glutathione peroxidase, catalase and total antioxidant in blood were measured. Finally, the quantitative data obtained were analyzed by ANOVA and Tukey’s post test amongst the groups at p<0.05. In the diabetic rats, metformin decreased the levels of glucose, triglycerides, cholesterol, LDL and VLDL in a meaningful way (p<0.001), while increasing the serum HDL level. For catalase, superoxide dismutase, glutathione peroxidase and total antioxidant, a significant increase (p<0.001) occurred by metformin. Metformin significantly (p<0.01) reduced the amount of lipid peroxidation (malondialdehyde) as well, but was below par. The results showed that Metformin, in addition to hypoglycemic effect, prevents hyperlipidemia of serum induced by diabetes; it also prevents oxidative damages of diabetes by increasing the antioxidant enzymes and decreasing the lipid peroxidation.