The purpose of this study was evaluated physiological activity of processed sulfur with Cordyceps militaris mycelium. Effect of blood glucose levels and lipid metabolism on streptozotocin-induced Diabetic Rats. To evaluate of hypoglycemic effects in vivo, we examined blood glucose levels, serum lipid profile and hepatotoxicity of streptozotocin (STZ) induced diabetic rats. Hypoglycemic effect of CM, CM+PSL and CM+PSH groups was significantly higher than DC groups. The activities of ALT, AST and ALP in CM+PSH group were lower than DC, PC groups. These results suggested that processed sulfur with Cordyceps militaris mycelium have activities of hypoglycemic effects.