The effect of milk protein (MP) and milk protein hydrolysate (MPH) as Anti-diabetic agent were investigated in vivo using six groups of normal and type 2 diabetic rats. The results of this study showed that the treatments of diabetic rats by oral intake of MP or MPH significantly reduced the concentrations of plasma glucose, total lipids of blood plasma, triglycerides, total cholesterol, LDL and VLDL in rat plasma. Also, the treatments of diabetic rats by oral intake of MP or MPH significantly increased the globulin value and HDL, while the concentration of urea, creatinine and bilirubin were reduced. In addition, oral intake of MPH has no affective on acid phosphatase (ACP), alkaline phosphatase (ALP), alanine transaminase (ALT) and aspartate transaminase (AST) activities in blood plasma and liver of normal rats and protective its concentrations in diabetic rats. The present results concluded that MP and MPH could be used as anti-diabetic agents.