Diabetes mellitus is associated with hyperglycemia, lipoprotein abnormalities and various organs dysfunctions. Stem cell therapy offers a great promise for the repair of injured tissues and organs. The aim of this study was to explore the effects of mesenchymal stem cell derived from bone marrow of albino rats on hyperglycemia, hypoinsulinemia, dyslipidemia and liver and kidney dysfunctions in STZ diabetic rats. Rat bone marrow mesenchymal stem cells (BM-MSCs) were isolated, cultured, characterized and finally injected intravenously (2 × 10 6 , via tail vein) into STZ-induced diabetic rats. The other diabetic (STZ) rats received no treatment. The diabetic (STZ) rats showed significant (P<0.05) increase in serum glucose, HbA1c, insulin resistance (IR), total cholesterol, TGs, LDL-C, VLDL-C levels and a significant decrease of serum insulin, HDL-C levels as compared to their corresponding control. Also, higher levels of liver function tests (ALT, AST & ALP) as well as kidney function tests (urea, uric acid and creatinine) were noticed in diabetic rats when compared to control group. Treatment of diabetic rats with MSCs significantly prevented these alterations. These data indicate the efficacy of MSCs transplantation in improving hyperglycemia, dyslipidemia, liver and kidney functions in diabetes mellitus. Further work is required to examine the curative effects on larger animal models and humans.