Background and Objective: Type 2 diabetes mellitus is characterized by a progressive decline in insulin action. Boswellia serrata administration during diabetes exerts beneficial effects in diabetic rats. The purpose of this study was to assess the effect of Boswellia serrata on blood glucose, insulin, insulin resistance index in type 2 diabetes patients.Materials and Methods: This clinical trial study was done on sixty patients, males and females in the age range of 30-48 years with type 2 diabetes. The patients were divided into 2 groups: 1. control group, 2. test group. Test group received Boswellia serrata (300 mg, three times daily for 6 weeks, chewing and packaged form) and control group received oral agents alone. Before and after 6-week treatment, blood samples were collected, Plasma was separated and frizzed at -20oC until measurement. The insulin levels and fasting blood glucose were measured and insulin resistance index was also calculated.Results: The 6-week administration of Boswellia serrata significantly decreased blood glucose (173.71±10 vs 147.57±8 mg/dl, P<0.01). Plasma insulin increased (13.3±1.5 vs 24.54±3.7 mIU/ml, p<0.01). Insulin resistance index did not change in the test group, but insulin resistance index increased in control group (6.7±1.9 vs 15.4±2.3, p<0.05). Insulin resistance index in test group decreased in comparison with control group (p<0.05).Conclusion: The results of this study suggest that Boswellia serrata had probably anti-diabetic effect that is exerted through increasing insulin secretion and reduction of blood glucose in type 2 diabetes patients.