Abstract: In the present study, the hypoglycemic and antioxidant effects of polysaccharide extracted from the fruit of physalis alkekengi L. (PPSB) were investigated in streptozotocin-induced diabetic rats. Polysaccharide from the fruit of physalis alkekengi L. were extracted by distilled water and classified by ethanol solution. The blood glucose, superoxide dismutase (SOD) activity and malondialdehyde (MDA) level were evaluated in streptozotocin-induced diabetic rats. The results show that PPSB could significantly reduce the blood glucose level in streptozotocin-induced diabetic rats (p<0.01). Meanwhile, PPSB could significantly increase the activity of SOD in blood,liver and pancreas and decrease the hepatic MDA level (p<0.05). This study suggestes that PPSB has hypoglycemic and antioxidant potentials, and PPSB may exert hypoglycemic effect in streptozotocin-induced diabetic rats partly by enhancing the antioxidative ability and reducing the lipid peroxidation to prevent tissues from peroxidative damage, thereby improving insulin sensitivity to target cells.