The effects of quercetin liposomes (Q-PEGL) on streptozotocin (STZ)-induced diabetic nephropathy (DN) was investigated in rats. Male Sprague Dawley rats were used to establish a STZ induced DN model. DN rats randomly received one of the following treatments for 8 weeks: blank treatment (DN), free quercetin (Que), pegylated liposomes (PEGL) and pegylated quercetin liposomes (Q-PEGL). A group of healthy rats served as the normal control. The fasting blood glucose (FBG), body weights (BWs), renal hypertrophy index (rHI), serum and urine biochemistry, renal histopathology, oxidative stress and immunohistochemical measurements of AGEs were analyzed to compare the effect of different treatments. Que and Q-PEGL significantly improved DN biochemistry and pathological changes, although the treated rats still had some symptoms of DN. The therapeutic effect of Q-PEGL surpassed that of Que. Pegylated quercetin liposomes allow maintaining higher quercetin concentrations in plasma than non-encapsulated quercetin. In conclusion the use of quercetin liposomes allows to reduce disease symptoms in a rat model of DN.Diabetes mellitus (DM) is a metabolic disorder characterized by hyperglycemia due to impaired body's ability to produce or respond to the hormone insulin 1 . Diabetic nephropathy (DN) is a microvascular complication of DM and causes long-term or end-stage renal disease 2 . Multifactorial interaction between lipid disorders, oxidative stress, renal hemodynamic changes, polyol activation, inflammatory pathways, and mitogen-activated protein kinase signaling pathways are involved in the pathophysiology of DN 3,4,7 . Therefore, strong antioxidants could potentially serve as treatments to diabetes related diseases 5 Quercetin (C 15 H 10 O 7 ,3′,4′,5,7-pentahydroxyflavone) is a potent dietary bioflavonoid found in diverse fruits, seeds, and vegetables such as legumes, apples, and chili peppers 4-7 . Pharmacological studies in humans show that quercetin has multiple biological functions including circulation system protection, anti-allergic, anti-inflammatory, anti-cancer, anti-diabetes, and cataract prevention 7 . Another important attribution of quercetin is to reduce aldose reductase, which is an enzyme that converts glucose to sorbitol through polyol pathway 5 .Natural quercetin has poor water solubility, therefore, quercetin liposomes are laboratory-prepared to improve its solubility and in vivo absorbability 7-9 . Liposomes are the most studied particle carrier systems allowing sustained release, and have the potential of enhancing the oral bioavailability of proteins and peptides 10 . Liposomes are small spherical lipid vesicles, composed of phospholipids and cholesterol, characterized on size, number of lamellae, and inner/outer phases 11,12 . Liposomes have good cell compatibility, reduce drug toxicity, improve drug stability and function for a long time 13 , and have been used to deliver drugs including antibiotic, antifungal, and cytotoxic agents 14 . Coating inert biocompatible polymers, such as PEG, on the liposom...