Lycopene has received a lot of attention because of its benefits in various chronic diseases such as cancer, cardiovascular, neurodegenerative, and metabolic diseases such as diabetes. Various studies using cell culture, animals, and humans as subjects have proven the benefits of lycopene in diabetes, but none have yet explained its molecular mechanism in detail. Therefore, this study aims to summarize and describe the benefits of lycopene in diabetes mellitus and the potential underlying mechanisms. This study is a literature review that uses articles obtained from the PubMed and Google Scholar databases by entering the keywords lycopene, diabetes, oxidative stress, inflammation, apoptosis, and autophagy either separately or in combination to obtain a logical concept. There are 33 main articles summarized and discussed in this study. Lycopene shows potential use in the therapy and prevention of diabetes complications, particularly through its antioxidant and anti-inflammatory activities. Lycopene also increases insulin signaling activity via the PI3K/AKT pathway. Moreover, lycopene supplementation contributes to decrease apoptosis in brain cells and weakens apoptosis in podocytes through the autophagy process. Knowing these benefits, lycopene supplementation in diabetics needs to be considered, but further research is needed in the form of large clinical trials to prove the benefits of lycopene in diabetes and the optimal dosage required.