The aim of the study was to assess of the effect of subdiaphragmatic vagotomy on lipid profile and insulin resistance in diabetic obese rat model. Fifty Male Albino rats 200±50g were divided into 5 groups 10 per each. Subdiaphragmatic vagotomy and sham operations were applied on diabetic obese rat model induced by high fat diet for 5 weeks and low dose of streptozotocin (30mg/kg). After 5 weeks, serum samples were collected for confirmation of hyperlipidemia and lee obesity index was measured. At the end of the experiment, oral glucose tolerance test, lee obesity index, lipid profile, fasting insulinemia, fasting glucose, insulin resistance (HOMA-IR) and histopathology of pancreases were assessed. Results revealed that Subdiaphragmatic vagotomy significantly improved hyperlipidemia as it normalized plasma triglyceride level, decreased plasma cholesterol level and increased plasma high density lipoprotein level in diabetic and non-diabetic obese vagotomized rats. Vagotomy significantly decreased lee obesity index and perigonadal fat pads weight, decreased fasting insulinemia, decreased HOMA-IR and improved glucose tolerance in diabetic and non-diabetic obese vagotomized rats. These results were confirmed by regression of degenerative changes and restoration of the size of pancreatic islets of Langerhans. In non-diabetic obese vagotomized group, the results of 120 minutes of oral glucose tolerance test and HOMA-IR were close to normal expected values. However, the same parameters were still away from normal expected values although normal histopathological results of pancreases, in diabetic obese vagotomized group. In Conclusion, subdiaphragmatic vagotomy has a promising role in treating obesity. Nevertheless, its role in treating diabetes needs further long-term studies to be approved.