This study reports the hypoglycemic effects of the crude exopolysaccharide (EPS) produced from submerged mycelial culture of Lentinus strigosus (Schwein.) Fr. (Family Polyporaceae) in streptozotocin (STZ)-induced diabetic rats. In a dose-dependent study, diabetic rats were treated with EPS at doses of 50-150 mg/kg of body weight for 7 days. Serum glucose and plasma insulin levels were measured in normal, STZ-induced diabetic, and EPS-treated diabetic rats. Following oral administration of FPS dosages for 7 days, the serum glucose levels in the STZ-induced diabetic rats were reduced up to 21.1% at the dose of 150 mg/kg of body weight. The results revealed that orally administered L. strigosus EPS, at the dose of 150 mg/kg, exhibited a considerable hypoglycemic effect in STZ-induced diabetic rats. Plasma insulin levels of STZ-induced diabetic rats decreased as compared to control group rats (P <.05). Although insulin levels slightly increased in the EPS-treated groups the increase was not statistically significant. The hypoglycemic potential of the EPS was further supported by histological observations of pancreatic islets of Langerhans.