This study was designed to examine the effect of Effective Microorganisms (EM) in the levels of glucose, cholesterol, triglycerides, high density lipoprotein (HDL), low density lipoprotein (LDL), vary low density lipoprotein (VLDL), alanine amenotransferase (ALT), aspartate amenotransferase (AST) in normal and alloxan-induced diabetic rats and these results were compared with the effect of Glibenclamide as control chemical drug. The results of this study showed that diabetes mellitus induced by alloxan for 30 days caused a significant increase in concentration of serum glucose, cholesterol, triglycerides, low density lipoprotein (LDL), vary low density lipoprotein (VLDL), alanine amenotransferase (ALT), aspartate amenotransferase AST levels. While significantly decreased high density lipoprotein (HDL). The results of this study reveled that administration of (EM) produced asignificant decreased in glucose, cholesterol, triglycerides, low density lipoprotein, vary low density lipoprotein, alanine amenotransferase, aspartate amenotransferase. While significantly increased high density lipoprotein levels of alloxan-induced diabetic rats. Also the results referred that the effect of EM was best the effect of the control chemical drug glibenclamide in its activity.