Background and purpose: Hyperglycemia contributes to type 2 diabetes and diabetes vascular complications by reduction of the activity of glyoxalase-I (GLO-I) and elevation of glycation, oxidative stress, and inflammatory markers. Linalool is reported to have beneficial effects on glucose metabolism in animal models of diabetes, so, this study aimed at investigating the effect of linalool on the activity of GLO-1 and inflammatory markers in rats with type 2 diabetes. Materials and methods: In this experimental study, type 2 diabetes was induced by nicotinamide and streptozotocin (210 + 55 mg/kg). The animals were divided into a control group and diabetic groups treated by linalool and those that received no treatment (n=10 per group). Linalool 25 mg/kg was administered by gavage daily for two months. Fasting blood sugar, insulin resistance index, lipid profile, the activity of GLO-I, markers of glycation (glycated albumin, methylglyoxal, and advanced glycation end products), oxidative stress (advanced oxidation end products and malondialdehyde), inflammation (interleukine-1β ) as well as serum creatinine and 24-h urinary protein excretion (renal dysfunction markers) were measured in all groups. Results: Linalool had reductive effects on serum fasting glucose, insulin resistance, dyslipidaemia, glycation oxidative stress, inflammatory markers, and renal dysfunction indices. GLO-I activity was found to be significantly higher in animals treated with linalool compared to the un-treated experimental group (P < 0. 001). Conclusion: Linalool could reduce the risk of developing diabetes vascular complications owing to raising the GLO-I activity and improving the antioxidant, anti-glycation, and antiinflammatory properties and has beneficial effects on glucose and lipid metabolism.