The purpose of this study was to investigate the effects of green tea catechin on lipid metabolism in streptozotocin(STZ)-induced diabetic rats. Male Sprague-Dawley rats weighing 150$pm$10gm were randomly assigned to one normal and three STZ-induced diabetic groups. Diabetic animals were fed catechin free diet(DM-0C group), 0.5% catechin diet(DM-0.5C group) and 1% catechin diet(DM-1C group). Diabetes was experimentally induced by intravenous injection of 55mg/kg body wt of STZ in citrate buffer(pH 4.3) after feeding of three experimental diets for 4 weeks. Animals were sacrificed at the 6th day of diabetic states. Levels of blood glucose were three fold higher in all three STZ-induced diabetic groups than that of the normal group. The levels of plasma insulin were markedly lower in three STZ-induced diabetic groups than that of the normal group. The levels of plasma cortisol were increased in DM-0C group compared with that of the normal group. Triglyceride, total-cholesterol and LDL-cholesterol levels in serum were increased in DM-0C groups compared with the normal group but were not significantly different between catechin diet groups and normal group. Serum HDL-cholesterol levels were reduced in DM-0C and DM-0.5C groups by 38% and 25%, respectively and had similar tendency in the DM-1C group compared with that of control group. Atherogenic index have shown same pattern as the result of total cholesterol. Activities of 3-hydroxy-3-methylglutaryl Co enzyme A(HMG-CoA) reductase were higher in DM-0C groups than those of the normal group but were not significantly different between catechin diet groups and the normal group. It is concluded that dietary catechins can modulate lipid levels of serum and liver HMG-CoA reductase activity in diabetic rats.