The aim of this study is to evaluate comparative effects of valsartan vs trandolapril in STZ induced diabetic nephropathy in rats. Albino rats (250-300 g) of either sex were used. Diabetic Nephropathy (DN) was induced by injecting STZ (50 mg/kg, I.V.) single dose. Animals were divided into 5 groups of 10 each. Group I-control, Group II-diabetic (STZ), Group III-valsartan (5 mg/kg, p.o.) daily, 5 days prior to STZ and continued for 12 weeks + STZ, Group IV-trandolapril (0.5 mg/kg, p.o.) daily, 5 days prior to STZ and continued for 12 weeks + STZ, Group V-insulin (5U/day, S.C.) + STZ. Blood and urine tests (blood sugar, serum creatinine, urine volume, urine protein and urine creatinine) were performed every month for 3 months. Marked hyperglycaemia, polyuria, proteinuria, and elevated serum creatinine level was observed in STZ diabetic rats. Valsartan as well as trandolapril pretreated animals showed a significant (p < 0.01) reduction in serum creatinine, and urinary protein excretion. However, valsartan was more potent than trandolapril in this regard. Both valsartan and trandolapril prevents progressive diabetic nephropathic changes in rats, however, valsartan was more potent than trandolapril.