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In the present study, we evaluated the hypoglycemic, hypolipidemic and anti-peroxidative effects of yam rice powder (YRP) derived from Tremella aurantialba on streptozotocin (STZ)-induced diabetic mice and diabetic patients. Diabetic mice were treated with ethanol extract of YRP (EEYR) at three doses or YRP for 30 days. Diabetic patients were treated with ethanol extract solution of YRP (ESYR) for 4.5 months. Results indicated that EEYR administration significantly reduced levels of fasting blood glucose (FBG), serum fructosamine, total cholesterol, total triglyceride and malondialdehyde, and increased glucose metabolism velocities and superoxide dismutase level in the serum compared with diabetic controls (p<0.01). Moreover, ESYR could replace chemical drugs to control the FBG and postprandial blood glucose levels of diabetic patients. Our results suggested that YRP could enhance hypoglycemic, hypolipidemic and antioxidant properties in STZ-induced diabetic mice and diabetic patients. Collectively, YRP might be used as food to prevent or manage diabetes.