Brewer's yeast may have beneficial effects on insulin receptors in diabetic rats because of its glucose tolerance factor. This study was conducted to investigate the effects of Brewer's yeast on glycemia and lipid profile in Streptozotocin (STZ) induced diabetic rats. Twenty four Wistar albino rats of either sex weighing 170 - 220 g bw were divided into four groups, (i) Control (ii) Control treated with Brewer’s yeast iii) STZ (60 mg/kg body wt) induced diabetic rats iv) STZ induced diabetic rats treated with Brewer’s yeast. Effect of a four-week oral administration of Brewer’s yeast (160 mg/kg/day) on the glucose homeostasis (RBS & HbA1c) & lipid profile was assessed in Control & STZ -induced diabetic rats. Body weight, food consumption, blood glucose, lipid profile were measured. Administration of STZ produced a significant increase in blood glucose and HbA1c levels (p<0.05) as compared to control group. Treatment with Brewer’s yeast significantly reduced blood glucose and HbA1c levels (p<0.05) in STZ induced diabetic rats. Significant decrease in blood glucose levels were also observed in control rats treated with Brewer’s yeast. Alterations in lipid profile produced in STZ group of rats were reversed with Brewer’s yeast. Based on this study, it can be concluded that Brewer's yeast supplementation has a modest beneficial effect on glycemia and lipid profile in STZ induced type 2 diabetic rats. Further studies are required to confirm the more beneficial effects of Brewer's yeast in diabetes mellitus.