This study examined the effects of black ginseng (9 times-steamed ginseng) on hypoglycemic action in streptozotocininduced diabetic rats as well as changes in ginsenoside composition by the steaming process. As the number of steaming cycles increased, the amounts of crude saponin and most ginsenoside contents decreased, while the amount of ginsenoside- Rg3 and the ratio of PD/PT (=[$Rb_1+Rb_2+Rc+Rd+Rg_3]/[Re+Rb_1+Rh_1]$) increased. This ginsenoside composition is a unique characteristic compared to other types of ginseng products. In order to investigate the hypoglycemic effect of the black ginseng extract, in vivo studies were performed in rats with streptozotocin-induced diabetes. The studies showed that the administration of the black ginseng extract decreased high blood glucose levels (more than 300 mg/dL) to a normal level (102 mg/dL). These results suggest that this black ginseng extract has a significant hypoglycemic effect and can be used as an anti-diabetic substance for dietary supplements or new drugs.